A Useless or Rudimentary Body Part That Is Thought to Have

question 16

Multiple Choice

A useless or rudimentary body part that is thought to have been important in ancestral populations but no longer has a known function is termed a(n) ________.

• A) evolved structure
• B) terminal structure
• C) vestigial structure
• D) residual structure

Calculate and interpret the payback period for capital investments.

Determine the net present value (NPV) of an investment and understand its implications for project selection.

Compute the internal rate of return (IRR) and understand its role in investment decisions.

Distinguish between cash flows and accounting profit in investment appraisal.

---

Definitions:

New Stock Issue

The release of additional shares by a company to the public for the purpose of raising capital.

Expansion

The phase of the business cycle where economic activities and production levels increase, leading to growth in GDP and employment.

Indexed Equity Mutual Fund

An equity mutual fund that holds a portfolio of stocks that matches their share (or weight) in a broad stock market index such as the S&P 500. The overhead of these funds is usually quite low because their expenses on stock trading and research are low.

Managed Equity Fund

An investment fund in which a manager or management team makes decisions about how to allocate assets in a portfolio of equities.