Using the Internal Rate of Return approach to investment, one would undertake an investment if the internal rate of return
A) equals zero.
B) equals the interest rate.
C) exceeds the interest rate.
D) is less than the interest rate.
C
You might also like to view...
If a 10 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the
a. two goods are complementary b. cross elasticity between the two goods is positive c. two goods are substitutes d. price elasticity of demand for the good whose quantity demanded increased must be inelastic e. price elasticity of demand for the good whose quantity demanded increased must be elastic
Wealth is defined as the:
A. value of monetary assets. B. value of assets that can be converted to cash on short notice. C. value of all assets minus the money that is owed. D. total amount of income earned in a one-year period.
The characteristic that distinguishes a monopolistically competitive market from a perfectly competitive market is the:
a. ease of entry. b. number of firms operating in the market. c. degree of government regulation in the activities of the firms. d. differentiation of products. e. extent of market share of each firm.
Which of the following is true of high and variable rates of inflation?
a. When such rates are present, it will be difficult for people to accurately forecast next year's rate of inflation. b. Inflation of this type will help promote economic growth and the efficient use of resources. c. People will respond to such rates by spending more time producing and less time trying to protect their wealth and income from the uncertainty created by the inflation. d. Inflation of this type will improve the information content delivered by market prices.