The Minimum Rate of Return Used by an Investor to Bring

question 59

Multiple Choice

The minimum rate of return used by an investor to bring future cash flows to their present value is called:

• A)The investment rate.
• B)The prime rate.
• C)The discount rate.
• D)The present rate.

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Definitions:

Automated Jointer

A machine tool used in woodworking for making flat surfaces along the lengths of boards, which operates automatically.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service, given current resources and constraints.

Job-Order Costing

An accounting method that collects and assigns manufacturing costs to individual units or batches of production, suitable for customized products.

Predetermined Overhead Rate

An estimate used to allocate manufacturing overhead to products, calculated before the accounting period begins based on expected costs and activity levels.