The rate of return is also called the: I)
Discount rate; II)hurdle rate; III)opportunity cost of capital
A)I only.
B)I and II only.
C)I,II,and III.
D)I and III only.

Question

Quizplus · Accepted Answer

All three terms, discount rate, hurdle rate, and opportunity cost of capital, are used interchangeably with the rate of return. The discount rate is the rate used to determine the present value of future cash flows, the hurdle rate is the minimum required rate of return to undertake a project, and opportunity cost of capital is the return that investors could earn on alternative investments with similar risk. Therefore, all three options are correct.

The Rate of Return Is Also Called The: I)