When Starting a Savings Plan

question 94

Multiple Choice

When starting a savings plan:

• A) Have at least five months' income saved for emergencies
• B) Wait until you have acquired your career job
• C) Save only in months where you have extra income
• D) All of the above
• E) None of the above.

---

Definitions:

Net Present Value

A method to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period.

Variable Costs

Expenses that fluctuate in direct proportion to the quantity of output or sales, including items like labor and materials.

Sensitivity Analysis

A method employed to ascertain the effects of varying an independent variable on a specific dependent variable, given certain presuppositions.

Fixed Costs

Expenses that remain unchanged regardless of the amount of goods produced or sold, staying fixed amidst variations in business operations.