The Present Value Index Is Computed Using Which of the Following

question 83

Multiple Choice

The present value index is computed using which of the following formulas?

• A) Amount to be invested/Average rate of return
• B) Total present value of net cash flow/Amount to be invested
• C) Total present value of net cash flow/Average rate of return
• D) Amount to be invested/Total present value of net cash flow

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Definitions:

Randomly Assigned

A method in experimental design where participants are allocated to various groups in a manner that ensures each has an equal chance of being selected, to increase the validity of the results.

Happiness

A state of well-being characterized by emotions ranging from contentment to intense joy.

Laboratory Experiments

Controlled tests or investigations conducted in a specially equipped setting where variables can be manipulated, observed, and measured to study their effects.

Quasi-Experiments

Research designs that attempt to evaluate cause-and-effect relationships but lack the full control or randomization of true experimental designs.