Miguel Just Purchased a Photo Editing App He's Been Saving

question 16

Multiple Choice

Miguel just purchased a photo editing app he's been saving up for.However,now he can't find it on his computer.He asks you for help.You open the Downloads folder and see the app's file.What should you check next?

• A) Make sure Miguel's credit card didn't expire.
• B) Make sure the computer has an antivirus program.
• C) Make sure the computer is connected to the Internet.
• D) Make sure the app is installed.

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Definitions:

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new plant, worthwhile, including the cost of debt and equity financing.

Required Return

The minimum expected rate of return on an investment deemed acceptable to an investor, taking into account the risk level of the investment.

Payback Period

The length of time it takes for an investment to generate an amount of cash flow equal to the initial amount invested.

NPV

Net Present Value, a financial metric used to evaluate the profitability of an investment or project, calculated by discounting the expected future cash flows to present day values and subtracting the initial investment cost.