The Rate of Return Is Also Called the

question 71

Multiple Choice

The rate of return is also called the

• A)discount rate only.
• B)discount rate and hurdle rate only.
• C)discount rate, hurdle rate, and opportunity cost of capital.
• D)discount rate and opportunity cost of capital only.

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Definitions:

Productive Facilities

Physical locations such as factories or offices where economic goods are produced or services are provided, utilizing labor, machinery, and equipment.

Land Improvements

Enhancements to a plot of land such as landscaping, parking lots, and fences that add value but are subject to depreciation.

Land Account

A financial ledger entry that represents the value of land owned by an entity.

Salvage Value

The estimated resale value of an asset at the end of its useful life, often considered in depreciation calculations.