In a Perceptual Map of Two Dimensions, How Are These

question 93

Essay

In a perceptual map of two dimensions, how are these dimensions determined?

Clarify the goals and components of personal financial planning.

Understand the role and impact of financial institutions and policies on personal finance.

Understand the role and functions of the Federal Reserve System.

Identify the stages of the adult life and financial needs cycle.

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Definitions:

Cost of Capital

The obligatory profit percentage a corporation needs to achieve on its investments to keep its market share and attract investors.

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of investments, representing the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

Net Cash Flows

The difference between a company's cash inflows and outflows during a specific period, representing its ability to generate value.

Depreciation

The accounting entry allocating the cost of a long-lived asset against income over the asset’s life. Depreciation is a noncash charge, so net income is generally less than true cash flow by at least the amount of depreciation.