The Difference Between the Present Value of an Investment and Its

question 254

Multiple Choice

The difference between the present value of an investment and its cost is the:

• A) Net present value.
• B) Internal rate of return.
• C) Payback period.
• D) Profitability index.
• E) Discounted payback period.

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Definitions:

Internal Reliability

A measure of consistency among multiple items or parts of a test or measurement tool.

Questionnaire

A set of written questions used for collecting information from respondents.

Positive Correlation

A relationship between two variables in which both variables move in the same direction, indicating that as one variable increases, the other also increases, and vice versa.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors; it is what causes individuals to act or behave in a certain way to fulfill their needs or desires.