The rate of return k is also referred to as the present value of capital in supply chain management.
Understand the Problem
The question is asking about the concept of the rate of return k in the context of supply chain management and its relationship to the present value of capital. It seeks to clarify this financial concept and its implications in supply chain contexts.
Answer
False
The statement that the rate of return k is also referred to as the present value of capital is false.
Answer for screen readers
The statement that the rate of return k is also referred to as the present value of capital is false.
More Information
The rate of return, often denoted by k, might be associated with terms like discount rate or hurdle rate, but it is not synonymous with the present value of capital. Present value refers to the current worth of a future sum of money or stream of cash flows given a specified rate of return.
Tips
A common mistake is to confuse the rate of return with financial terms such as present value, which is actually the calculated value of future cash flows in current terms.
Sources
- Decision Making in Supply Chain Management - Course Hero - coursehero.com
- Designing Global Supply Chain Networks: Key Decision-Making - cliffsnotes.com
AI-generated content may contain errors. Please verify critical information
