Defense Arguments Are Sometimes Used to Prevent Exports to Unfriendly

question 85

Multiple Choice

Defense arguments are sometimes used to prevent exports to unfriendly countries.This runs the risk of the targeted country ________.

• A)becoming politically destabilized
• B)removing import restrictions
• C)finding alternative sources of supply
• D)banding with other countries to form a cartel

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Definitions:

MIRR

Modified Internal Rate of Return, a financial metric that accounts for the cost of capital and reinvestment of cash flows.

IRR

The interest rate at which the total present value of a project or investment's incoming and outgoing cash flows sum to zero.

WACC

A technique called Weighted Average Cost of Capital computes a firm’s cost of funds, taking into account the proportional weighting of various capital types.

NPV

Net Present Value represents a technique for assessing the profitability of a project or investment, utilized in the process of capital budgeting.