Differences Between Islamic MFIs and Conventional MFIs Include

question 112

Multiple Choice

Differences between Islamic MFIs and conventional MFIs include:

• A) source of fund
• B) mode of financing
• C) target group
• D) all of the above

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Definitions:

Cost Of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract investors.

Average Rate

Usually refers to the mean value of a set of rates or percentages over a specified period or set of conditions.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.