The annual rate of return is often referred to as the
A)discount rate.
B)opportunity cost.
C)cost of capital.
D)all of the above.

Question

Quizplus · Accepted Answer

The annual rate of return can be referred to as the discount rate when evaluating the present value of future cash flows, the opportunity cost when deciding between investment options, and the cost of capital when determining the minimum required return for a particular investment. Therefore, all of the above options are correct.

The Annual Rate of Return Is Often Referred to as the