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All of the following mean the same as Minimum Attractive Rate of Return except: (a) Hurdle rate (b) Inflation rate (c) Benchmark rate (d ) Cutoff rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

All of the following mean the same as Minimum
Attractive Rate of Return except:
(a) Hurdle rate
(b) Inflation rate
(c) Benchmark rate
(d ) Cutoff rate

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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