Examlex
Which of the following statements is true?
Discount Rate
This interest rate is used in the framework of discounted cash flow analysis to determine the present worth of cash flows anticipated in times ahead.
Simple Rate of Return
A financial metric that measures the efficiency of an investment as the annual income divided by the initial investment cost.
Time Value of Money
The principle that a sum of money is worth more now than the same sum in the future due to its potential earning capacity.
Payback Method
A method of investment appraisal that calculates the time required for the cash inflows from a project to repay its initial investment cost.
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