A Project's Opportunity Cost of Capital Is

question 54

Multiple Choice

A Project's opportunity cost of capital is:

• A)the forgone return from investing in the project.
• B)the return earned by investing in the project.
• C)equal to the average return on all company projects.
• D)designed to be less than the project's IRR.

---

Definitions:

Accountants

Accountants are professionals who carry out accounting tasks, including auditing, financial statement analysis, and advice on financial planning.

CISA

Certified Information Systems Auditor, a professional certification for information technology audit professionals.

Ethically

In a manner that follows accepted standards of moral behavior, often considered in the context of business practices.

Consequences

The results or effects that follow from specific actions or decisions.