Which of the Following Is the Last Step in a Return

question 92

Multiple Choice

Which of the following is the last step in a return on investment (ROI) analysis?

• A)Determining the training costs
• B)Calculating the total savings
• C)Identifying the outcomes
• D)Dividing benefits by costs
• E)Placing a value on the outcomes

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a fixed asset evenly across its useful life.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Present Value

A calculation that determines the current value of a future amount of money or stream of cash flows given a specified rate of return.

Annual Cash Flows

The total amount of money being transferred into and out of a business over one year, considered in terms of liquidity and financial health.