Examlex
Intranets:
Multiple Rates Of Return
One potential problem in using the Internal Rate of Return method if more than one discount rate makes the Net Present Value of an investment zero.
Net Present Value
A process that evaluates how the worth of a dollar now compares to its worth in the future, factoring in both inflation and investment returns.
Discount Rate
This is the rate of interest utilized in discounted cash flow analysis to calculate the current worth of future cash flows.
Investment
The process of distributing assets, typically funds, with the aim of earning a return or profit.
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