Multiple Choice
The rate of discount which equilibrates the cost of capital good s and the expected future returns from the capital good is known as
A) Internal rate of return
B) Net present value
C) Average annual rate of return
D) None of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q12: If the net present value is greater
Q13: Where capital availability is unlimited and the
Q14: If interest rates rise, the present value
Q15: A project is accepted when<br>A)Net present value
Q16: The values of the future net incomes
Q17: If inflation occurs, investment will be<br>A)More profitable<br>B)Less
Q18: If the net present value (NPV) is
Q19: _ on capital is called 'Cost of
Q20: In an investment project, the lower the
Q22: Projects with _ are preferred<br>A)Lower payback period<br>B)Normal