The Rate of Return That Equates the Present Value of Cash

question 123

Multiple Choice

The rate of return that equates the present value of cash inflows and outflows is the:

• A) minimum rate of return.
• B) internal rate of return.
• C) desired rate of return.
• D) hurdle rate.

---

Definitions:

Sale of Receivables with Recourse

A financial transaction where a company sells its receivables to another party but remains liable if the party owing the receivables fails to pay.

Required Disclosure

Information that entities are legally mandated to provide to stakeholders, regulators, or the public within financial statements or reports.

Scheduled Interest

The amount of interest payments that are planned and detailed according to the terms of a loan over a certain period.

Repayment Schedule

A repayment schedule outlines the terms for paying back a loan or debt, specifying the amounts due at each payment interval, the number of payments, and the interest rate applied.