In Her Letter to Policyholders, Min Yi Needs a Graphic

question 72

Multiple Choice

In her letter to policyholders, Min Yi needs a graphic depicting the procedure a policyholder follows when filing a claim. Which of these would be most appropriate?

• A)Organizational chart
• B)Flowchart
• C)Illustration
• D)Table

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Definitions:

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period.

Internal Rate

Often referred to as the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project zero.

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recover its initial cost.