Based on Findings from a National Study of Over 21,000

question 69

Multiple Choice

Based on findings from a national study of over 21,000 couples,family life researcher David Olson advises that a happy marriage requires:

• A)accepting a decrease in romance
• B)paying positive attention to the relationship
• C)agreeing rather than having conflict
• D)being nice no matter what

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Definitions:

Average Rate of Return

A monetary measurement for assessing an investment's profit efficiency, determined by dividing the yearly average profit by the cost of initial investment.

Cash Payback

A capital budgeting method that estimates the time required for an investment to generate cash flows sufficient to recover its initial cost.

Internal Rate of Return

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

Present Value Factor

A multiplier used to calculate the present value of a future amount of money or stream of payments.