Examlex
What do all experiments have in common?
Present Value
The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in evaluating investment opportunities.
Internal Rate of Return
A financial metric used to evaluate the profitability of an investment, representing the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.
Required Rate of Return
The minimum annual percentage return a investor expects to achieve from an investment, considering the risk involved.
Simple Rate of Return
A method of evaluating the financial performance of an investment by dividing annual incremental operating income by initial investment.
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