Which of the Following Best Defines 'Incremental Earnings

question 64

Multiple Choice

Which of the following best defines 'incremental earnings'?

• A)The net present value (NPV)of earnings that a firm is expected to receive as the result of an investment decision
• B)The amount by which a firm's earnings are expected to change as the result of an investment decision
• C)Cash flows arising from a particular investment decision
• D)The earnings arising from all projects that a company plans to undertake in a fixed timespan

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Definitions:

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a certain context, used as a default position until evidence suggests otherwise.

Correlation

A measure of the relationship between two variables, indicating how one may predict or relate to the other.

Consensus Validation

A method of establishing the reliability of a construct by demonstrating agreement among independent judges or assessments.

Big Five

The Big Five refers to a model in personality psychology comprising five broad personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.