The rate of return k is also referred to as the

Question

Quizplus · Accepted Answer

All of the options (A,B,C) are correct. The rate of return is also known as the discount rate because it is used to calculate the present value of future cash flows. It is referred to as the hurdle rate because it is the minimum rate of return required for an investment to be considered profitable. Lastly, it is the opportunity cost of capital because it represents the return that could have been earned by investing in an alternative opportunity with the same level of risk.

The Rate of Return K Is Also Referred to as the