What Is Another Term for the Required Rate of Return

question 124

Multiple Choice

What is another term for the required rate of return when using the net present value model?

• A) the huddle rate
• B) the payback rate
• C) the discount rate
• D) the maximum acceptable rate of return

---

Definitions:

Market Price

The existing rate at which merchandise or services are exchanged in a commercial environment.

Losses

Situations where expenses exceed revenues, resulting in negative income.

Economic Profit

The variance between cumulative revenue and aggregate outlays, covering both manifest and concealed costs.

Competitive Market

A competitive market is one in which a large number of buyers and sellers interact, leading to goods and services being offered at market-determined prices with minimal barriers to entry or exit.