The ____ method assumes that the cash flows over the life of the project are reinvested at the ____
a. net present value; computed internal rate of return
b. internal rate of return; firm's cost of capital
c. net present value; firm's cost of capital
d. net present value; risk-free rate of return
e. none of the above
c
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Which of the following production functions exhibits constant returns to scale?
A) q = KL B) q = KL0.5 C) q = K + L D) q = log(KL)
It is usually assumed that a perfectly competitive firm's supply curve is given by its marginal cost curve. In order for this to be true, which of the following additional assumptions are necessary? I. That the firm seeks to maximize profits. II. That the marginal cost curve be positively sloped. III. That price exceeds average variable cost. IV. That price exceeds average total cost
a. All of the above. b. I and II but not III and IV. c. I and III but not II and IV. d. I, II and III, but not IV.
Credit cards
A) make it easy for people to borrow funds at a low rate of interest. B) are just like money because funds can be used to purchase things up to the credit limit. C) can help you get more from your money because they make it possible for you to spend more than you earn. D) make it easy for people to run up sizeable debt.
The Industrial Revolution refers to the stream of new technology and the resulting growth of output that began in England toward the end of the eighteenth century.
Answer the following statement true (T) or false (F)