The Required Rate of Return Is

question 72

Multiple Choice

The required rate of return is

• A) the rate of return that the organization forgoes by investing in a particular project rather than in an alternative project of comparable risk.
• B) the rate of return required by shareholders.
• C) the same as the internal rate of return.
• D) a rate that is set by industry standards.
• E) the rate the Canada Revenue Agency requires on overdue tax payments.

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Definitions:

Voltage Across

The potential difference in electric potential between two points in an electrical circuit.

Voltage Polarity

The polarity of the voltage at a particular point in a circuit. Generally of concern in direct current circuits.

Current Flow

The flow of electric charge carriers like electrons through a conductor or space.

Power Dissipation

The conversion of electrical energy into heat in various components of a circuit, often leading to energy loss.