What Answer Should Be Reported,with the Correct Number of Significant $\frac { ( 16.84 - 15.93 ) } { 9.6318 }$

question 110

Multiple Choice

What answer should be reported,with the correct number of significant figures,for the following calculation? $\frac { ( 16.84 - 15.93 ) } { 9.6318 }$ × 12.3

• A)1.16
• B)1
• C)1.162
• D)1.1621
• E)1.2

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Definitions:

Profitability Index

A financial tool used to determine the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Internal Rate of Return

A financial metric that estimates the profitability of potential investments by calculating the discount rate that makes the net present value of all cash flows from a project equal to zero.

Internal Rate of Return

The discount rate at which the net present value of all cash flows from a project equals zero, used to assess the profitability of potential investments.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.