Investment Is _______ Related to the Interest Rate and Net

question 83

Multiple Choice

Investment is _______ related to the interest rate and net capital outflow is _______ related to the interest rate.

• A) negatively; negatively
• B) negatively; positively
• C) positively; positively
• D) positively; negatively

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Definitions:

Simple Rate

The percentage increase or interest rate in a financial calculation, often straightforward or uncomplicated.

Net Present Value

A method used in capital budgeting to analyze the profitability of an investment, calculating the difference between present values of cash inflows and outflows.

Proposed Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Net Present Value

The divergence in current value of cash inflows versus outflows over an established time frame.