Capital Flight Refers to

question 122

Multiple Choice

Capital flight refers to

• A)the movement of workers across international borders in response to exchange rate changes.
• B)the movement of funds between financial intermediaries when interest rates change.
• C)the ability of foreign direct investment to lift a country out of poverty.
• D)a large and sudden movement of funds out of a country.

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Definitions:

WACC

This calculation, known as the Weighted Average Cost of Capital, quantifies a company's cost of capital by proportionately weighting each type of capital it uses.

WACC

The Weighted Average Cost of Capital identifies the cost of a company's capital by weighting each capital category in proportion to its significance.

NPV

Net Present Value, a method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

IRR

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