There Are 13 Members on a Board of Directors

question 38

Multiple Choice

There are 13 members on a board of directors. If they must form a subcommittee of 5 members, how many different subcommittees are possible?

• A)120
• B)1287
• C)154,440
• D)371,293

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Definitions:

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time.

Investment

An asset or item acquired with the goal of generating income or appreciation.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of investments.

Investment

The allocation of resources, such as capital or time, with the expectation of achieving a future return or profit.