The Discount Rate That Yields a Net Present Value of Zero

question 165

Multiple Choice

The discount rate that yields a net present value of zero for an investment is the:

• A) Net present value rate of return.
• B) Zero rate of return.
• C) Internal rate of return.
• D) Payback rate of return.
• E) Accounting rate of return.

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Definitions:

Professional Hockey

A level of ice hockey played by athletes who are compensated for their performance and participation in established leagues worldwide.

Downsloping Demand Curve

Represents the inverse relationship between price and quantity demanded, indicating that as price decreases, demand increases, and vice versa.

Marginal Utility

The extra pleasure or benefit a consumer receives from consuming an additional unit of a product or service.

Total Utility

The total satisfaction or benefit derived from consuming a particular quantity of goods or services.