Match Each Numbered Entry with the Most Relevant Lettered Entry

question 19

Multiple Choice

Match each numbered entry with the most relevant lettered entry below
-together and individually

• A)contingency
• B)incident to divorce
• C)must be recaptured
• D)instrument
• E)adjusted gross income
• F)joint and several
• G)gross income
• H)innocent spouse
• I)not living in the same household
• J)pendente lite

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Definitions:

IRR Cross-Over Rate

The rate at which two projects have the same net present value (NPV) when considering their internal rate of return (IRR), used to choose between competing projects.

Annual Cash Flow

The total amount of money being transferred into and out of a business, measured yearly.

Initial Cost

The acquisition cost of an asset or investment, which might include the purchase price and any other expenses necessary to get the asset ready for use.

Profitability Index

A financial tool used to measure the relative profitability of an investment project, calculated as the present value of future cash flows divided by the initial investment.