The discount rate at which the Net Present Values (NPVs) of two mutually exclusive projects are equal is known as?
وہ ڈسکاؤنٹ ریٹ جس پر دو کاروباری طور پر متبادل منصوبوں کی این پی وی کے ساتھ تعاون کیا جائے گا؟
- Accounting Rate of Return
- Fisher Rate of Return / Fisher Intersection
- Internal Rate of Return
- None of these
Explanation
- The Fisher Rate of Return is the discount rate at which the NPVs of two mutually exclusive projects are equal.
- It is also called the Fisher Intersection Rate or Fisher Rate.
- At this rate, both projects have the same NPV, so the investor is indifferent between them based on NPV.
- It is useful when comparing mutually exclusive investment projects.
- The concept is associated with economist Irving Fisher.
Last verified on 08-08-2026
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