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When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.
Average Accounting Return
A financial ratio indicating the average net income an asset is expected to generate compared to its average capital cost.
Redeeming Feature
A characteristic or option in a financial product that offers the possibility of benefitting the holder, such as the ability to convert bonds into stock.
Required Return
The minimum expected yield by investors for investing in a particular asset, considering its risk.
Independent Projects
Projects that are evaluated for investment purposes, where the acceptance of one project does not affect the decision to undertake another.
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