Suppose That a Firm Can Invest $100 Today in a Project

question 32

Multiple Choice

Suppose that a firm can invest $100 today in a project and receive $105 a year from today. There is no inflation, and the annual interest rate in the economy is 4%. The firm should

• A) invest in the project because the opportunity cost is less than the return on the investment.
• B) invest in the project because the opportunity cost is greater than the return on the investment.
• C) invest in the project because the opportunity cost is the same as the return on the investment.
• D) not invest in the project because the opportunity cost is less than the return on the investment.

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Definitions:

Resting Plasma Membrane

The state of the plasma membrane of a cell when it is not being excited by external stimuli, maintaining a specific voltage across it.

Positively Charged

Describes atoms or molecules that have more protons than electrons, resulting in a net positive electrical charge.

Electrically Neutral

A condition where an object or system has an equal number of positive and negative charges, leading to no net electrical charge.

Depolarization

A reversal in the electrical potential across a cell's plasma membrane, leading to the initiation of an action potential or nerve impulse.