The Letters in AICD Stand for ________

question 34

Short Answer

The letters in AICD stand for ________.

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Definitions:

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and satisfy its shareholders.

Reinvestment Assumption

The presumption that cash flows received from an investment will be reinvested at a consistent rate over the life of the investment.

Net Present Value

A financial measure that calculates the present value of net cash flows (inflows minus outflows) from an investment, discounting future cash flows to the present.