Naomi Needs to Earn a Twelve Percent Return from Investing

question 97

Multiple Choice

Naomi needs to earn a twelve percent return from investing in her cousin's business. Under the NPV method of discounting cash flows, if the business can earn only a ten percent return, she will not satisfy her

• A) expected cost of capital.
• B) internal rate of return.
• C) opportunity cost.
• D) required rate of return.

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Definitions:

Blade

A thin, flat edge or surface used for cutting or shaping materials, found in tools such as knives, swords, and blades of grass.

Neolithic Transition

The period marking the shift from hunting and gathering communities to agricultural and settlement societies, bringing about significant changes in human lifestyle and culture.

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Extinct large mammals closely related to modern elephants, lived in various parts of the world during the Ice Age, known for their long tusks and woolly coats.