An Organization Has Identified the Following Segments

question 5

Multiple Choice

An organization has identified the following segments:

Which of the identifiable segments above are reportable?

• A)Segments A,B,and C only
• B)Segments B,C,and E only
• C)Segments B and C only
• D)Segments A,B,C,and E only

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Definitions:

Net Present Value

An approach to determining the value of an investment by discounting future cash flows to their present value.

Cash Flows

The total amount of money being transferred into and out of a business, particularly regarding calculating its operating, investing, and financing activities.

Discount Rate

Utilized in discounted cash flow analysis, this rate assists in calculating the present worth of forthcoming cash flows.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate to present day.