Which of the Following Was Not One of the Innovations

question 25

Multiple Choice

Which of the following was not one of the innovations that stimulated homeownership in Levittown and other suburbs in the 1950s?

• A) Mass production techniques applied to construction
• B) Extensive car ownership
• C) Low-cost mortgages from the Federal Housing Administration and the Veterans Administration
• D) Improved mass transportation to the suburbs
• E) Income tax deductions for home mortgage interest payments

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Definitions:

WACC

By employing the Weighted Average Cost of Capital calculation, a company's cost of capital is assessed, with each type of capital weighted proportionately.

Payback

The period of time required to recover the cost of an investment.

NPV

Net Present Value: a capital budgeting technique that determines the profitability of a project or investment.

WACC

A firm's Weighted Average Cost of Capital is derived by calculating the cost of capital for each capital category and then weighting these costs according to each category's presence in the total capital structure.