A Financial Model That Measures the Current Value of All

question 22

Multiple Choice

A financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of return is known as the _________ model.

• A) Internal rate of return (IRR)
• B) Net present value (NPV)
• C) Return on investment (ROI)
• D) Return on assets (ROA)
• E) Inflow / outflow

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Definitions:

Cycle Time

The total time from the beginning to the end of a process, operation, or cycle, often used to assess efficiency and productivity in manufacturing and other processes.

Raw Materials

Basic materials from which products are made, typically extracted natural resources or agricultural products.

Finished Good

A product that has completed the manufacturing process and is ready for sale to consumers or other buyers.

Internal Auditing

The independent and objective evaluation of an organization's financial and operational activities, typically performed by in-house staff.