Which of the Following Calculates the Net Present Value of an Investment,given

question 18

Multiple Choice

Which of the following calculates the net present value of an investment,given a fixed discount rate?

• A)PV
• B)FV
• C)NPV
• D)IPMT

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Definitions:

Expectancy Theory

A psychological theory explaining the processes that individuals use to make decisions based on their beliefs about the likelihood of success and the value of the success to them.

Expectancy

An individual’s assessment of the probability that effort will lead to correct performance of the task.

Goal Characteristics

The specific attributes or factors that define goals, including their clarity, difficulty, relevance, and the extent to which they are achievable and measurable.

Performance Levels

The degrees or stages of how effectively an individual, group, or organization meets their goals or objectives.