Research Has Projected Cumulative Risks of Over 70% for One

question 23

Multiple Choice

Research has projected cumulative risks of over 70% for one burglary or break-in attempt per home.This statistic is better informed by considering which of the following?

• A) These were based on relatively low burglary rates in the 1990s and 2000s.
• B) These were based on relatively high burglary rates in the 1970s and 1980s.
• C) These were based on crimes over a lifetime of 60 years starting at age 12.
• D) These were based on crimes against individuals, not against households.

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Definitions:

NPV

Net Present Value: a capital budgeting technique that determines the profitability of a project or investment.

WACC

A firm's Weighted Average Cost of Capital is derived by calculating the cost of capital for each capital category and then weighting these costs according to each category's presence in the total capital structure.

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Cash Flow

The overall movement of capital entering and leaving a firm, which directly affects its solvency.