Which Term Below Is Best Described as "Management's Minimum Desired

question 200

Multiple Choice

Which term below is best described as "management's minimum desired rate of return on an investment?"

• A) Payback return
• B) Discount rate
• C) Internal rate of return
• D) Net present value

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Definitions:

Notes Payable

Short-term or long-term liabilities in the form of written promises to pay a specified amount with interest by a certain date.

Fixed Assets/Sales Ratio

A financial metric that indicates how efficiently a company is using its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits, often used to make informed business decisions.

Financial Planning Models

Quantitative models used to project financial components such as revenue, expenses, and cash flow over a period, aiding in business strategy and decision-making.