A Parameter That Will Be Estimated by the SEM Procedures

question 63

Multiple Choice

A parameter that will be estimated by the SEM procedures is said to be ____.

• A)fixed
• B)free
• C)endogenous
• D)exogenous

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Definitions:

Discount Rate

This rate is employed in the process of discounted cash flow analysis to ascertain the present worth of forthcoming cash flows.

Useful Life

The estimated period over which a fixed asset is expected to be usable by an organization.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment valuation and project evaluation.

Annual Net Cash Inflows

The total amount of cash received minus cash expenses over a year.