Federal Reserve Board Guidelines for Checks

question 35

Multiple Choice

Federal Reserve Board guidelines for checks:

• A) require indorsements to be in blue or black ink.
• B) must be followed or the check will not go through the banking system.
• C) require bank indorsements to be made within 2 inches of the left edge of the back of the check.
• D) Require indorsements to be in blue or black ink and that  bank indorsements to be made within 2 inches of the left edge of the back of the check.

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Definitions:

Project's Payback

A calculation that determines the duration required for an investment to generate cash flows or profits enough to recover the initial investment cost.

WACC

Weighted Average Cost of Capital; the average rate of return a company must pay its security holders to finance its assets.

MIRR

The Modified Internal Rate of Return, a financial metric that measures the profitability of an investment while considering the cost of borrowing and reinvestment of cash flows.

Projected MIRR

Projected MIRR refers to the estimated modified internal rate of return, a comprehensive measure of an investment’s attractiveness, adjusting for the cost of capital and cash flow reinvestment rates.