For Purposes of Applying the Net Present Value and the Internal

question 82

Multiple Choice

For purposes of applying the net present value and the internal rate of return methods,the rate chosen to measure the time adjusted value of money is known as the:

• A) Internal rate.
• B) Average rate.
• C) Prime rate.
• D) Discount rate.
• E) Compound rate.

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Definitions:

Pension Benefit Guarantee Corporation

A federal agency that protects the retirement incomes of American workers in private-sector defined benefit pension plans.

T-statistic

A value derived from the t-test, used to determine if there is a significant difference between the means of two groups being compared.

Z-score

A statistical measurement of a score's relationship to the mean in a group of scores.

Sampling Distribution

A distribution of probabilities associated with a particular statistic, originating from a random sample.