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.

---

Definitions:

Shift Key

A modifier key on a keyboard used to type capital letters and other alternate "upper" characters.

Ruler

A tool in graphics and word processing software that helps users align text, graphics, and other elements within a document.

Modified Block

A format style for business letters where the body is left-aligned, and the date and closing begin at the center point.

Complimentary Close

A polite phrase or word used to conclude a letter or email, such as "Sincerely" or "Best regards".