Question

• Rate Of Return • Break-Even • Unpaid Balance • Internal Rate Of Return

Define concepts for each one thank you

Answer 1

1. Rate of Return:-

Rate of return can be described as the profits or losses or in other terms the gain or loss incurred after various investments.

It can be calculated as the current value gained minus the orginal value which is wholely divided by the orginal value.

This rate helps in measuring the net profits from certain investments.

2. Break even:-

Break even is a term or a point at which the firm does not earn any profits or losses.

This is said to occur when the total cost incurred by a firm equals the total revenue it earns.

3. Unpaid balance:-

Unpaid balance refers to the remaining balance or payment that is payable but is still due on a person or a business.

It may include balance cash amount, loans, debts, credits etc.

It can also be considered as a certain portion of a debt or a loan that is not yet paid back to the lender.

4. Internal rate of return:-

Internal rate of return is a measure that helps in estimating the rate of return from an investment.

It helps in evaluating the rate of attractiveness of an investment or a project.

When calculating the IRR we do not have to consider the extrernal factors like the costs incurred, risk undertaken, rate of inflation etc.