How Many Residents Does a City Need to Have Before

question 16

Multiple Choice

How many residents does a city need to have before it is eligible to adopt a "home rule" charter?

• A) 2,000
• B) 3,000
• C) 4,000
• D) 5,000

---

Definitions:

Discounted Cash Flow Technique

Considers both the estimated total net cash flows from the investment and the time value of money.

Net Present Value Method

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows.

Internal Rate Of Return Method

A method of calculating the profitability of potential investments where the net present value of all cash flows equals zero.

Capital Budgeting

Capital Budgeting is the process by which organizations evaluate potential major projects or investments to determine their value and allocation of capital.