Examlex
Which one of the following statements is correct for a project with a positive NPV?
Compensating Balance
A minimum account balance that a borrower must maintain as a condition for a bank loan, often to compensate the bank for extending credit.
Interest Rate
Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Effective Annual Interest Rate
The real return on an investment after accounting for the effect of compounding interest over a period.
Inventory Period
The average time it takes for inventory to be sold and replaced over a period, indicating the efficiency of a company's inventory management.
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