Which of the Following Is Most Likely to Be an Inferior

question 109

Multiple Choice

Which of the following is most likely to be an inferior good?

• A)airline travel
• B)restaurant meals
• C)a subscription to the Wall Street Journal
• D)soft drinks
• E)used clothing

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Definitions:

IRR

IRR (Internal Rate of Return) is a financial metric used to evaluate the profitability of an investment, representing the interest rate at which the net present value of cash flows from the investment is zero.

Initial Investments

The initial amount of money put into a project or venture at the start of its operation.

Cost of Capital

The rate of return that a company must pay to its capital providers, including both debt and equity, to finance its assets.

Expansion Project

A business initiative aimed at increasing the size, reach, or capabilities of the company, often requiring significant capital investment.