The Opportunity Cost of Capital Is Equal To

question 60

Multiple Choice

The opportunity cost of capital is equal to:

• A) the discount rate that makes project NPV equal zero.
• B) the return offered by other projects of equal risk.
• C) a project's internal rate of return.
• D)the average rate of return for a firm's projects

---

Definitions:

Lurking Variable

A variable that is not directly studied yet influences the relationship between the independent and dependent variables under investigation.

Positive Association

A relationship between two variables where both variables move in the same direction.

Firefighters

Trained personnel responsible for extinguishing fires, rescuing individuals, and preventing the spread of fire and damage.

Damages

Monetary compensation that a party is ordered to pay to another as restitution for wrong or injury.