In 2013, the Top 20% of U

question 25

Multiple Choice

In 2013, the top 20% of U.S. households owned _____ of the national income.

• A) 3.4%
• B) 20%
• C) 50%
• D) 99%

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Definitions:

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows.

IRR

Internal Rate of Return, a metric used in capital budgeting to estimate the profitability of potential investments.

NPV

Net Present Value, a financial metric used to analyze the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Capital Budgeting

The process a business undergoes to evaluate potential major investments or expenses.