The Reason You Would Prepare a Durable Power of Attorney

question 235

True/False

The reason you would prepare a durable power of attorney is to make sure that someone was named to take over your finances if you become incapacitated.

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Definitions:

Compound Interest

A way of computing interest wherein the initial amount of the loan or deposit and all the interest that has accrued in former periods are included in the calculation.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Present Value

The present financial value of a future money amount or stream of cash flows, calculated using a specific rate of return.

Annual Net Cash Flows

The amount of cash a company generates after all its expenditures, both operational and capital in nature, have been paid off within a fiscal year.