The Current Value of a Proposed Investment May Be Calculated

question 14

Multiple Choice

The current value of a proposed investment may be calculated as its ________.

• A) Internal rate of return (IRR)
• B) Present value (PV)
• C) Net present value (NPV)
• D) Return on investment (ROI)

---

Definitions:

Standard Normal Random Variable

A type of random variable with a mean of 0 and a standard deviation of 1, used in Z-tests.

Standard Deviation

A measure of the dispersion or variability of a set of values, indicating how much they deviate from the mean.

Value

The worth, importance, or usefulness of something, often measured in terms of money, utility, or general significance.

Normal Random Variable

A variable following a normal distribution, characterized by a symmetric bell-shaped curve.