Usually an Investment Will Be Profitable If

question 117

Multiple Choice

Usually an investment will be profitable if:

• A) the internal rate of return is less than the cost of borrowing.
• B) the cost of borrowing is equal to the internal rate of return.
• C) it is financed with retained earnings.
• D) the cost of borrowing is less than the internal rate of return.

---

Definitions:

Economic Collapse

Economic collapse describes a sudden and severe downturn in the economy of a country or region, characterized by extreme financial distress, such as a stock market crash, hyperinflation, or the fall of a currency.

Unemployment

The condition of being without a job, but actively seeking work and willing to work, often used as an important economic indicator.

Work Force

The total number of people employed or available for employment in a specific community, region, or country, including both the employed and those seeking employment.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.