The Opportunity Cost of Capital Must Be the Minimum Required

question 46

Multiple Choice

The opportunity cost of capital must be the minimum required return from any project. Which of the following options best explains why that must be so?

• A) Brokers must be able to invest the funds for themselves externally.
• B) An internal investment must offer investors more than they can achieve by investing the funds for themselves.
• C) An internal investment must offer investors less than they can achieve by saving the funds.
• D) An external investment must offer the firm more than they can achieve by saving the funds.

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Definitions:

Stem Elongation

The process by which a plant's stem grows in length, often influenced by environmental conditions and hormonal signals.

Gravity Reception

The perception and response mechanism to gravity in organisms, helping them to maintain balance and orientation.

Root Cap

A protective structure located at the tip of a plant root, consisting of parenchyma cells that protect the growing tip in soil.

Phototropic Response

A growth movement by a plant part in response to a light stimulus, typically towards the source of light to maximize photosynthesis.