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:

Guaranteed Loan

A loan backed by a third party, reducing the risk for lenders and often making it easier for borrowers to secure financing.

SBA

Refers to the Small Business Administration, a U.S. government agency that provides support to entrepreneurs and small businesses.

Venture Capital Firms

Investment companies that provide funding to start-up companies and small businesses with perceived long-term growth potential.

High-tech Industries

Sectors that are heavily involved in the development and production of technology, including computing, telecommunications, and biotechnology.