An Estimate of an Asset's Value to the Company, Calculated

question 145

Multiple Choice

An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment, is known as:

• A) Unamortized carrying value.
• B) Annual net cash flows.
• C) Rate of return on investment.
• D) Net present value.
• E) Payback period.

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Definitions:

Dominant Strategy

A strategy that yields the best payoff for a player, regardless of what strategies other players use.

Wealth

The total value of all the economic resources owned by an individual or entity.

Contribute

To give something, such as time, money, or resources, towards a common goal or cause, often for the benefit of a larger group or project.

Benefit

A term referring to the positive outcome or satisfaction received from consuming a good or service or from a particular economic activity.