Using a Base Year as 100% and Expressing Other Years

question 60

Multiple Choice

Using a base year as 100% and expressing other years as a percentage of the base year is an example of

• A)trend analysis.
• B)vertical analysis.
• C)horizontal analysis.
• D)benchmarking.

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Definitions:

Discounted Payback

A modified payback period method that takes into account the time value of money by discounting cash flows.

Electromagnetism

A branch of physics that studies the interaction between electric currents and magnetic fields.

Solenoid

A coil of wire that acts as a magnet when carrying electric current, often used to control a valve or other components by moving a ferromagnetic core.

Relay

An electrical switch that opens and closes circuits electromechanically or electronically, often used for controlling a high-power circuit with a low-power signal.