The Ratio of Net Present Value to Initial Investment Is

question 95

Multiple Choice

The ratio of net present value to initial investment is known as the:

• A) net present value.
• B) internal rate of return.
• C) payback period.
• D) profitability index.

---

Definitions:

Partial Sum

The sum of a specified number of terms at the beginning of a sequence.

Rebounds

In sports, the act of successfully retrieving the ball after a missed shot.

Geometric Sequence

A numerical series where each number after the first is determined by multiplying the prior number by an unchanging, non-zero numerical value, denoted as the common ratio.

Partial Sum

A partial sum is the sum of the first n terms of a sequence, often used in the context of series to understand the progression or to investigate convergence.