The Minimum Annual Acceptable Rate of Return on an Investment

question 25

Multiple Choice

The minimum annual acceptable rate of return on an investment is the ________.

• A) accrual accounting rate of return
• B) hurdle rate
• C) internal rate of return
• D) net present value

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Definitions:

Decision Trees

A graphical representation used for making decisions, showing different courses of action and the potential outcomes or risks associated with each.

Decision Tables

A tool used in both computer programming and business decision-making to represent and analyze complex decision rules and logic by organizing actions and conditions in a tabular form.

Expected Monetary Value

A decision-making tool used in risk management to calculate the average outcome when the future holds scenarios with different probabilities.