A Named Property or Characteristic of an Entity That Is

question 30

Multiple Choice

A named property or characteristic of an entity that is of interest to the organization defines:

• A) attribute.
• B) relationship.
• C) instance.
• D) associative entity.
• E) data flow.

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting future cash flows to their present value and subtracting the initial investment.

IRR

The Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

NPV Profiles

Graphs that show the relationship between a project's NPV and various discount rates, used to analyze the sensitivity of a project's value to changes in the cost of capital.

Crossover Rate

The rate at which the net present values of two projects are equal, often used in capital budgeting to compare projects.