The rate of return k is also referred to as the present value of capital.
Understand the Problem
The question is stating a fact about the rate of return k, indicating that it is associated with the present value of capital. However, it does not pose a specific question or ask for clarification, making it more of a statement than an inquiry.
Answer
False, the rate of return k is not referred to as the present value of capital.
The statement 'The rate of return k is also referred to as the present value of capital' is false.
Answer for screen readers
The statement '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 as k, is instead commonly referred to as the discount rate, hurdle rate, or opportunity cost of capital, but not the present value.
Tips
Confusing terms like 'rate of return' with present value calculations is common; remember that present value reflects what future cash flows are worth today using a discount rate.
Sources
- True or False questions - chegg.com
- Decision Making in Supply Chain Management - Course Hero - coursehero.com
- Assignment 6 (docx) - Course Sidekick - coursesidekick.com
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