Question 1

The rate of discount which equilibrates the cost of capital good s and the expected future returns from the capital good is known as

Accepted Answer

A) Internal rate of return 
B) Net present value 
C) Average annual rate of return 
D) None of the above

Question 2

Projects with __________ are preferred

Accepted Answer

A) Lower payback period 
B) Normal payback period 
C) Higher payback period 
D) Any of the above

Exam 6: Key Concepts in Investment and Economic Analysis

The rate of discount which equilibrates the cost of capital good s and the expected future returns from the capital good is known as