Examlex
The term validity, as used in testing and assessment, refers to which of the following?
IRR
Internal Rate of Return, a financial metric used to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.
Required Rate of Return
The minimum annual percentage return that an investor expects to achieve when investing in a particular asset or project.
NPV
Net Present Value, a financial metric used to assess the profitability of an investment, calculated as the difference between the present value of cash inflows and outflows.
IRR
Internal Rate of Return is a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.
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