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Which of the following expressions are a way to represent rate of return or yield? Select all that apply.

1) Annual percentage rate (APR)
2) Effective annual rate (EAR)
3) Internal rate of return (IRR)
4) Net present value (NPV)

User Juderb
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Final answer:

APR, EAR, and IRR are expressions that represent the rate of return or yield on an investment, whereas NPV is a separate financial metric that does not directly express a rate of return.

Step-by-step explanation:

Among the expressions provided, Annual percentage rate (APR), Effective annual rate (EAR), and Internal rate of return (IRR) all represent ways to describe the rate of return or yield on an investment. However, Net present value (NPV) is a different financial metric used in investment decision making and does not directly represent a rate of return.

APR is often used to describe the interest rate for a whole year rather than just a monthly fee/rate, as applied to a loan or credit card balance. EAR is the interest rate adjusted for compounding over a year. IRR is a financial metric used to estimate the profitability of potential investments and is the discount rate that makes the net present value of all cash flows from a particular project equal to zero. In contrast, NPV is the calculation of the net value of all future cash flows produced by an investment after accounting for the initial capital invested.

User Lfkwtz
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