How Do Kettles Form

question 46

Multiple Choice

How do kettles form?

• A)by the melting of large blocks of ice left by a glacier
• B)by melting permafrost
• C)by meltwater streams running through glacial tunnels
• D)by seasonal deposition of coarse and fine sediment

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Definitions:

IRR

Internal Rate of Return; the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new plant, worthwhile.

Capital Rationing

In capital budgeting, the process of allocating available capital among projects to maximize total NPV.

IRR

The Internal Rate of Return; a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.