Choose the Word or Phrase in [ ] Which Will

question 89

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The beneficiary [will | will not] have to pay income taxes on the proceeds from a life insurance policy.

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Definitions:

Project Profitability Index

A financial metric used to determine the relative profitability of a project, calculated by dividing the present value of future expected cash flows by the initial investment.

Present Value

The present value of a future amount of money or series of cash inflows, considering a particular rate of interest.

Cash Inflows

Money received by a business from its operational, investing, and financing activities.

Discount Rate

The rate utilized in calculating the present value of anticipated future cash flows in discounted cash flow analysis.