The rate of return describes the:
A)expected profit that a project will generate per dollar invested.
B)the cost of borrowing.
C)interest rate on loans.
D)All of these are true.

Question

Quizplus · Accepted Answer

The rate of return is a measure of the expected profit generated by a project per dollar invested. It takes into account both the cost of borrowing and the interest rate on loans, but is typically used to evaluate investment opportunities rather than borrowing options. Therefore, option A is the most accurate choice.

The Rate of Return Describes The