In a Cause-And-Effect Relationship

question 15

Multiple Choice

In a cause-and-effect relationship

• A)both variables must be shown to be independent.
• B)the independent variable must come before the dependent variable in time.
• C)the two variables must never display correlation.
• D)there must be evidence that the correlation is spurious.

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Definitions:

Internal Rate Of Return

The percentage rate that equalizes the net present value of a project's cash flows to zero.

Mutually Exclusive Projects

Investment projects where the acceptance of one negates the possibility of accepting another.

Internal Rate Of Return

A measure employed in evaluating financial returns to gauge the potential profitability of investments.

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the time value of money and risk.