Complete the Following Statement: the Ratio Is Equal to

question 48

Multiple Choice

Complete the following statement: The ratio is equal to

• A)10².
• B)10³.
• C)10⁶.
• D)10^-3.
• E)10^-6.

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Definitions:

Internal Rate of Return

This is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Payback Period

The length of time it takes for an investment to recover its initial expenditure from the cash inflows that it generates.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value, adjusted for the impact of taxes.

Income Tax Rate

The percentage of taxable income that individuals or corporations are required to pay to the government.