The Method That Calculates the Ratio of the Present Value

question 126

Multiple Choice

The method that calculates the ratio of the present value of the positive cash flows of a project to the absolute value of the present value of the negative cash flows is called the: Awkwardly worded.#98 is phrased more clearly.

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

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology).

Strike

A work stoppage caused by the mass refusal of employees to work, usually in an attempt to gain better wages or working conditions.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all inputs are used efficiently.

Economic Growth

Refers to the increase in the production of economic goods and services, from one period to another, often measured by GDP (Gross Domestic Product).