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Critical Thinking Questions Case 4-1
Your friends know that you understand a lot about computers, both the technical details of how they operate as well as information about software. Lately, with all of the concerns about copyright infringement, friends have started to ask you about categories of application software and what each kind permits.
You tell your friends that all of the following are true EXCEPT:
Minimum Required Rate
The lowest rate of return or yield that an investor expects or requires from an investment.
Internal Rate of Return
The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.
Rate of Return
A measure of the profitability and efficiency of an investment, expressed as a percentage of the original investment.
Initial Investment
The funds allocated to start a business or a project, representing the beginning financial input.
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