Examlex
Which of the following is correct in reference to a database?
Average Rate of Return
A financial metric used to estimate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.
Internal Rate of Return
The discount rate that makes the net present value (NPV) of all cash flows from an investment equal to zero.
Net Present Value
A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.
Present Value Factor
A factor used in calculating the present value of a cash flow that will be received or paid at a future date.
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