Examlex
Add or subtract. Assume all variables represent positive real numbers.
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Accounting Rate
The interest rate used in the process of accounting, particularly in discounting cash flows, which can affect the calculation of net present value or internal rate of return.
Hurdle Rate
The minimum rate of return required by management for an investment to be acceptable, used in budgeting and capital allocation decisions.
Internal Rate
This term is too broad without specific context, such as “Internal Rate of Return (IRR).” Assuming IRR, it is a financial metric used to estimate the profitability of potential investments.
Present Value
The today's value of a forthcoming sum of money or cash flow sequence, determined by a specific rate of return.
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