When Using the NPV Method for a Particular Investment Decision

question 11

Multiple Choice

When using the NPV method for a particular investment decision, if the present value of the cash inflows is equal to the present value of the cash outflows, then:

• A) the discount rate used was too high.
• B) the investment should not be made.
• C) the investment has an actual rate of return of zero percent.
• D) the discount rate is equal to the internal rate of return.

Understand the impact of health care policies, including the Affordable Care Act and Medicare, on patient care and health care delivery.

Understand the role and focus of community-based nursing practices.

Understand the rationale and impact of public and community health initiatives.

Identify vulnerable populations and factors contributing to their vulnerability.

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Definitions:

Taxable Income

The amount of income used to calculate how much the taxpayer owes in taxes to the government.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), reflecting the percentage of income paid in taxes.

Taxable Income

The amount of income that is used to calculate an individual's or a company's income tax due to the government.

Average Tax Rate

The fraction of total income that goes to taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.