A Fiscal Action That Is Initiated by an Act of Congress

question 21

Multiple Choice

A fiscal action that is initiated by an act of Congress is called

• A) the government expenditure multiplier.
• B) discretionary fiscal policy.
• C) automatic fiscal policy.
• D) generational fiscal policy.

Understand how to determine and interpret the internal rate of return (IRR) for an investment.

Ability to compare and assess different capital investment opportunities based on NPV and IRR computations.

Understand the effect of salvage value on the NPV of a project.

Learn how to calculate the present value of an annuity and the present value of a single amount.

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Definitions:

Annual Revenues

The total income generated by a business from its operations over a fiscal year before any expenses are subtracted.

Voting Securities

Financial instruments that give the holder the right to vote on matters of corporate policy and the composition of the board of directors.

Non-Affiliates

Entities or individuals that are not directly connected through ownership or control with another entity.

Audit Committee

A subcommittee of a company's board of directors that is responsible for overseeing financial reporting and disclosure.