E-Sign

question 17

Multiple Choice

E-Sign:

• A)applies only to interstate transactions.
• B)must still be adopted by the states to be effective.
• C)does not apply to contracts for the sale of goods.
• D)applies in all 50 states.
• E)none of the above

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Definitions:

Profitability Index

A financial tool that calculates the ratio of the present value of future expected cash flows to the initial investment cost.

Working Capital

A disparity between a firm's current holdings and its outstanding obligations, signifying its short-term economic fitness and effectiveness in functioning.

Discount Rate

In the context of discounted cash flow analysis, this is the interest rate used to establish the present-day value of future cash inflows.

Net Operating Cash Inflows

This represents the cash that a business generates from its ordinary, operational activities, excluding financing or investment cash flows.