Asked by
Claudia Fortiche
on Dec 16, 2024
Verified
The average rate of return for this investment is
A) 5%
B) 10%
C) 25%
D) 15%
Present Value Factor
A multiplier used to determine the present value of a future amount of money or stream of cash flows given a specific discount rate.
Desired Rate of Return
The minimum percentage return an investor expects to achieve on an investment, influencing the choice of investment.
- Evaluate and construe the average yield on an investment.
- Apply knowledge of present value factors in assessing the acceptability of investments.
Verified Answer
MG
Learning Objectives
- Evaluate and construe the average yield on an investment.
- Apply knowledge of present value factors in assessing the acceptability of investments.