Which of the Following Is Implied by the Requirement That

question 10

Multiple Choice

Which of the following is implied by the requirement that a loss should be determinable and measurable to be insurable?
I.The loss must be definite as to place.
II.The loss must be definite as to amount.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

---

Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the net difference between present value of cash inflows and outflows over a period.

IRR

Stands for Internal Rate of Return, a metric used in financial analysis to estimate the profitability of potential investments.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios).

Decision Tree Analysis

A graphical representation that uses branching methods to illustrate every possible outcome of a decision, helping to choose the best option.