What Term Is Used for the Minimum Acceptable Rate of Return

question 53

Multiple Choice

 What term is used for the minimum acceptable rate of return on an investment?

• A) capitalization rate
• B) internal rate of return
• C) discount rate
• D) required rate of return

---

Definitions:

Compounded Monthly

The process where the interest earned on an investment is added to the principal, and future interest payments are then calculated on the new principal amount on a monthly basis.

Monthly Loan Payment

A fixed payment amount made by a borrower to a lender at a specified date each calendar month.

Facility

A physical or virtual space configured to serve a specific purpose, such as manufacturing, storage, or office work.

Present Value

The current value of a future sum of money or stream of cash flows, given a specific rate of return.