The Rate of Interest That Produces a Zero Net Present

question 92

Multiple Choice

The rate of interest that produces a zero net present value when a project's discounted cash operating advantage is netted against its discounted net investment is the

• A)cost of capital.
• B)discount rate.
• C)cutoff rate.
• D)internal rate of return.

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Definitions:

Core Period

The essential or most active time frame in which specific events or activities are expected to occur.

Flextime Schedules

A work arrangement that allows employees flexibility in choosing their working hours within agreed limits.