The True Economic Yield Produced by an Asset Is Summarized

question 44

Multiple Choice

The true economic yield produced by an asset is summarized by the asset's:

• A) non-discounted cash flows.
• B) net present value.
• C) future value.
• D) annuity discount factor.
• E) internal rate of return.

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Definitions:

Sales Margin

The difference between the selling price of a product or service and its cost, expressed as a percentage of sales.

Capital Turnover

A ratio that measures the efficiency of a company's use of its capital in generating revenue.

Invested Capital

The total amount of money put into a company by its owners and creditors for use in the business operations, often used as a metric in financial analysis.

Investment Centre

An organizational division or unit that is responsible for generating its own revenue as well as controlling its own costs, often evaluated based on its profitability and return on investment.