________ Is a Statistical Measure of the Relationship Between Any

question 94

Multiple Choice

________ is a statistical measure of the relationship between any two series of numbers.

• A) Coefficient of variation
• B) Standard deviation
• C) Correlation
• D) Probability

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Definitions:

IRR

The Internal Rate of Return; a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Salvage Value

The foreseen market valuation of an asset at the lifespan’s end.

Present Values

The now-value of a forthcoming financial amount or cash flow pattern, discounted at a fixed rate of return.

Net Present Value Method

A financial analysis tool used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.