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explain the following terms based on your own examples (a) Interest rate of return (b) Cost benefit...

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Question

Civil Engineering

explain the following terms based on your own examples

(a) Interest rate of return

(b) Cost benefit analysis

(c) the break even point

(d) Net present value

(e) Sensitivity analysis

Answer & Explanation Solved by verified expert
4.2 Ratings (753 Votes)
Ans A Interest Rate Of Return In IRR it considers what discount rate will be needed to produce an NPV that is net present value of 0 for the product Every product has some or the other things have a net present value of zero but they have different amount of Interest Rate of Return which could vary for different companies The internal rate that procduces the net present value as zero it is then termed as internal rate of return For ex If i am investing 1000 and i am getting a 10 interest on that So that 1000 amount now earns 1000 x 10 100 in a year Now that 1000 becomes 1100 in one years time    See Answer
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