Minimum cash flow ∕ Investment = Maximum rate of return.

Name: Minimum cash flow ∕ Investment = Maximum rate of return.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Minimum cash flow / Investment gives a basic return ratio, but the maximum rate of return is typically calculated using more complex methods such as Internal Rate of Return (IRR) or Net Present Value (NPV), which consider the time value of money and cash flow over the entire investment period.

Minimum Cash Flow ∕ Investment = Maximum Rate of Return