Which of the Following Is the Rate of Return, Based

question 25

Multiple Choice

Which of the following is the rate of return, based on discounted cash flows, that a company can expect to earn by investing in a capital asset?

• A)accounting rate of return (ARR)
• B)bank interest rate
• C)internal rate of return (IRR)
• D)return on investment

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Definitions:

Social Security System

A governmental program designed to provide financial assistance to individuals during retirement, and in some cases, upon disability or to surviving family members upon a worker's death.

Transcontinental Railroad

A contiguous network of railroad trackage that crosses a continental landmass with terminals at different seas or ocean borders.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by increasing the price of imported goods.

Agricultural Inventions

Innovations and developments in the field of agriculture that improve efficiency, yield, or sustainability in food production.