The Riskiest Type of Capital Expenditures Are

question 3

Multiple Choice

The riskiest type of capital expenditures are

• A) Mandatory investments
• B) Discretionary investments replacing existing assets
• C) Discretionary investments expanding the size of current operations
• D) Discretionary investments that push the organization into new products or markets

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Definitions:

Forward Rate

An interest rate agreed upon today for a loan that will start at a future date, reflecting expectations of future interest rates.

Future Rate

The future rate is a predicted interest or exchange rate based on current and expected future economic conditions, affecting loans, investments, and financial planning.

Foreign Bonds

Bonds issued in a domestic market by a foreign entity, in the domestic market's currency, as a method of securing capital from investors in that market.

International Bonds

Bonds issued in a country by a non-domestic entity, which can be denominated in the domestic or a foreign currency.