A. real rate of return
B. required rate of return
C. nominal rate of return
D. none of above
Related Mcqs:
- The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as _________?
A. nominal rate of return
B. accrual accounting rate of return
C. real rate of return
D. required rate of return - If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be __________?
A. 27.28%
B. 25.28%
C. 22.28
D. 21.28 - The rate of return, which is made up of risk free and business risk element is known as _____________?
A. nominal rate of return
B. accrual accounting rate of return
C. real rate of return
D. required rate of return - If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?
A. $30,500
B. $20,500
C. $25,500
D. $32,500 - An investment is multiplied to required rate of return, to calculate: _____________?
A. congruent cost of investment
B. transfer cost of investment
C. operating cost of investment
D. imputed cost of investment - If the nominal rate is 26% and the inflation rate is 12%, then the real rate can be __________?
A. 13.75%
B. 11.65%
C. 12.50%
D. 13.50% - The project’s expected monetary loss or gain by discounting all cash outflows and inflows, using required rate of return is classified as _________?
A. net present value
B. net future value
C. net discounted value
D. net recorded cash value - The rupee amount for required return of investment is subtracted from income to calculate _____________?
A. net income
B. after tax income
C. residual income
D. operating income - If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be ____________?
A. $6.20
B. $7.20
C. $4.20
D. $5.20 - The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?
A. relevant purchase order costs
B. relevant inventory carrying costs
C. irrelevant inventory carrying costs
D. relevant opportunity cost of capital
