The _____ of an Investment Is the Value of Future

question 74

Multiple Choice

The _____ of an investment is the value of future income (discounted at the firm's cost of capital) minus the up-front investment costs.

• A)net opportunity cost
• B)adjusted payback period
• C)discounted payback period
• D)net present value
• E)adjusted opportunity cost

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Definitions:

Precipitate

A solid substance that forms in a solution through a chemical reaction and settles out of the solution.

Conduct

To transmit or facilitate the transfer of something, such as electricity or heat, or to carry out a particular action or task.

Ionic Compounds

Chemical compounds composed of ions held together by electrostatic forces known as ionic bonding.

Dissolve

The process of a substance becoming incorporated into a liquid to form a solution, typically through physical and chemical interactions.