You Are Passing an Accident on the Road

question 7

Multiple Choice

You are passing an accident on the road. You are more likely to get involved or at least make a call for help if

• A)others are standing by.
• B)you are the first one on the scene.
• C)you are in a hurry.
• D)you had a terrible day and are in a bad mood.

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Definitions:

Accounting Rate of Return

A financial ratio that measures the return on investment from a project based on its net income.

Time Value of Money

The concept that money available today is worth more than the same amount in the future due to its earning capacity.

Net Present Value

The variance between the current worth of incoming cash and the current worth of outgoing cash throughout a specific time frame.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.