The Rate of Return That Equates the Present Value of a Project's

question 106

Short Answer

The rate of return that equates the present value of a project's cash inflows with the present value of its cash outflows (the NPV equals zero).

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Definitions:

Enabling Act

Legislation that gives an entity or body the authority to take certain actions or to draft and enforce laws.

State Legislature

The legislative body in each of the states of the United States, responsible for enacting state laws and appropriating state funds.

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair competition and fraudulent, deceptive practices in the marketplace.

Unfair Trade Practices

Actions by businesses that are deceptive, fraudulent, or otherwise detrimental to consumers in the marketplace.