Which not appropriate term for the required rate of return

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Reference no: EM132811025

Problem 1: Which of the following is not an appropriate term for the required rate of return?

a. Discount rate
b. Hurdle rate
c. Cost of capital
d. All these answers are correct

Problem 2: The capital budgeting method that calculates the discount rate at which the present value of expected cash inflows from a project equals the present value  of expected cash outflows is the:

a. Net present value method
b. Accrual accounting rate of return method
c. Payback method
d. Internal rate of return method

Problem 3: The net initial investment for a piece of construction equipment is R1 000 000. Annual cash inflows are expected to increase by R200 000 per year. The  equipment has an 8-year useful life. What is the payback period?

a. 8 years

b. 7 years
c. 6 years
d. 5 years

Reference no: EM132811025

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