Which Financial Calculation Provides a Percentage Rate That Measures the Relationship

question 47

Multiple Choice

Which financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested?

• A) IRR
• B) ROI
• C) Payback
• D) NPV
• E) EVA

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Definitions:

Just-world Hypothesis

The cognitive bias that a person's actions always bring morally fair and fitting consequences to that person, essentially "you get what you deserve."

Tree

A perennial plant with an elongated stem, or trunk, supporting branches and leaves, in most species.

Proximity

The state, quality, or fact of being close or near in space, time, or relationship.

Complementarity

A concept in relationships that suggests a higher degree of satisfaction when partners' characteristics or behaviors complement each other well.