If a Project Has a Positive Net Present Value,it Means

question 76

Multiple Choice

If a project has a positive net present value,it means the project is expected to provide returns that are ________ the cost of capital.

• A)greater than
• B)less than
• C)equal to
• D)not connected to

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Definitions:

Increasing Marginal Opportunity Costs

Represents the concept that each additional unit of a good or service produced requires the sacrifice of increasingly more valuable alternatives.

Specific Product

A particular product identified by its unique characteristics or defined specifications, distinguishing it from other products.

Extra Utility

The additional satisfaction gained from consuming one more unit of a good or service.

Production Possibilities Curve

A graph that depicts the maximum feasible amounts of two commodities that a business can produce when those commodities compete for limited resources.