Increased Human Capital Is a Source of

question 126

Multiple Choice

Increased human capital is a source of

• A) an increased labor force rate.
• B) increased productivity.
• C) decreased wages.
• D) decreased output.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Payback Period

The length of time required to recover the cost of an investment.

IRR

The rate at which the projected cash flows of an investment will yield a net present value of zero, used as a measure to assess the profitability of investments.

Terminal Value

The estimated value of a business or project beyond the forecasted period when future cash flows can be projected.