The Method That Calculates the Ratio of the Present Value

question 77

Multiple Choice

The method that calculates the ratio of the present value of the positive cash flows of a project to the absolute value of the present value of the negative cash flows is called the:

• A)internal rate of return
• B)profitability index
• C)net present value
• D)payback period

---

Definitions:

Republican

A member or supporter of the Republican Party in the United States, one of the two major political parties, traditionally emphasizing limited government and free-market principles.

Liberal Systems

Political or social systems that emphasize freedom, democracy, and the importance of individual rights.

Foundation of Freedom

The underlying principles or conditions that establish and support the state of being free, including rights like speech, assembly, and self-determination.

1741 Panic

A wave of public anxiety in New York City in 1741, fueled by fears of a slave uprising, leading to harsh legal actions against slaves and poor white settlers.