According to Equity Theory, Equity Exists When Work Inputs Equal

question 137

True/False

According to equity theory, equity exists when work inputs equal work outputs.

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Definitions:

Payback

The period of time required to recover the cost of an investment.

Liquidity

The simplicity of transforming an asset or security into immediate cash without impacting its market value.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows (both positive and negative) from a particular project or investment equal to zero.

Required Return

The smallest percentage of annual gain required from an investment to attract individuals or corporations to fund a certain project or venture.