The reflects the opportunity costs of spending funds now versus achieving a return through another investment, as well as the risks associated with not receiving returns until a later time.
A) modified internal rate of return
B) payback period
C) accounting rate of return
D) discount rate

Question

Quizplus · Accepted Answer

The description given relates to the concept of discount rate, which is the rate used to discount future cash flows to their present value. It reflects the idea that money now is worth more than money in the future, due to the opportunity cost of not being able to invest that money elsewhere, as well as the risks associated with not receiving returns until a later time.

The Reflects the Opportunity Costs of Spending Funds Now Versus