The Correlation Between Schools' Financial Support and Educational Effectiveness Is

question 48

Multiple Choice

The correlation between schools' financial support and educational effectiveness is

• A)strongly negative; the thriftiest schools are most effective.
• B)nonexistent; there is no relationship.
• C)weakly positive.
• D)strongly positive; the wealthiest schools achieve the best results.

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Definitions:

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, considering inflation and returns, used to evaluate investments.

IRR

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

Cost of Capital

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

Profit Margin

A financial measurement that calculates the percentage of profit a company makes from its total revenue.