The Z-Value Associated with an 80% Level of Confidence Is

question 131

Multiple Choice

The z-value associated with an 80% level of confidence is:

• A) 1.96
• B) 1.645
• C) 2.33
• D) 2.575
• E) 1.28

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Definitions:

Payback Method

Payback Method is a capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover the initial investment cost.

Investments

Assets or items acquired with the intention of generating income or appreciation over time, including stocks, bonds, real estate, or other vehicles.

Liquidity

The simplicity of turning an asset into cash without impacting its market value.

Terminal Value

An estimate of a project's or company's value at the end of a forecast period, extending beyond the period of explicit cash flow projections.