Unlike the net present value criteria, the internal rate of return approach assumes a reinvestment rate equal to ________
A) the relevant cost of capital
B) the project's internal rate of return
C) the project's opportunity cost
D) the market's interest rate
B
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The following are Acme's production costs for the quarter ended September 30th: Direct materials$150,000 Direct labor$175,000 Factory overhead$225,000 What amount of costs should be traced to specific products in the process?
A. $325,000 B. $150,000 C. $225,000 D. $175,000
Depreciation expense on store equipment for a department store is an indirect expense
Indicate whether the statement is true or false
If you borrow $100,000 at an annual rate of 8.00% for a 10-year period and repay the total amount of principal and interest due of $215,892.50 at the end of 10 years, what type of loan did you have?
A) Amortized loan B) Interest-only loan C) Discount loan D) Compound loan
Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then:
A) Percy can disaffirm the contract based on the wrongful act of the dealer. B) Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. C) Percy may keep the mobile home but is only liable for the reasonable value of the mobile home. D) Percy must keep the mobile home and abide by the original terms of the contract.