The Ratio Between the Present Value of a Project's Cash

question 11

Multiple Choice

The ratio between the present value of a project's cash inflows and the present value of its initial investment is called the:

• A)MIRR.
• B)IRR.
• C)PM.
• D)NPV.
• E)none of the above are correct

---

Definitions:

Risk-Free Asset

An investment with a certain return and virtually no risk of financial loss.

Expected Rate

The forecasted return rate on an investment over a specified period.

Standard Deviation

A statistical measure that represents the dispersion or variability of a set of data points or the distribution around the mean.

Risk-Free Asset

An investment that provides a guaranteed return with no chance of loss.