The Minimum Acceptable Annual Rate of Return on an Investment

question 9

Multiple Choice

The minimum acceptable annual rate of return on an investment is referred to as the _________.

• A)income tax
• B)payback period
• C)required rate-of-return
• D)internal rate-of-return
• E)discounted cash flow methods

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Definitions:

Federal Income Tax

The tax levied by the Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

FICA Taxes

Taxes required by the Federal Insurance Contributions Act, funding Social Security and Medicare, assessed on both employers and employees.

Child Maltreatment

The abuse or neglect of a child, including physical, emotional, or sexual harm, as well as the failure to provide for a child's basic needs.

Economic Stress

The financial pressure experienced by individuals or households due to insufficient income, high expenses, or economic uncertainty.