Which Common Financial Measure Is Calculated by Subtracting the Initial

question 11

Multiple Choice

Which common financial measure is calculated by subtracting the initial investment from the future cash flows that result from the investment?

• A)Return on interest
• B)Internal rate of return
• C)Net present value
• D)Discount rate

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Definitions:

Workers' Compensation Insurance

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.

Employee's Benefit

Various forms of compensation provided to employees beyond salaries, including health insurance, retirement plans, and paid vacation.

Personal

Relating to or affecting a particular person rather than anyone else; this term is often used in law to distinguish between an individual's private affairs and their public or business roles.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.