A Capital Expenditure Project Has an Expected 20 Percent Internal

question 12

Multiple Choice

A capital expenditure project has an expected 20 percent internal rate of return and a $10,000 net present value.It has one cash flow sign change.

• A)The discount rate used to calculate NPV is greater than 20 percent
• B)The project has another internal rate of return in addition to the 20 percent rate mentioned above
• C)In the internal rate of return calculation, the project's cash inflows are assumed to be reinvested at the firm's required rate of return
• D)None of these

Learn the appropriate use of e-mail in organizational communication along with guidelines for its effective use.

Identify the continuous loop of communication and understand the barriers that may interrupt this loop.

Recognize potential problems in digital communication such as blogging, and how they can be mitigated.

Develop effective listening skills and understand their benefits in organizational communication.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the efficiency with which a company utilizes its resources.

Explicit Costs

are direct, out-of-pocket payments for expenses incurred by a business or individual.

Revenues

The total income generated by a company or organization from its activities, before any expenses are subtracted.

Economic Profit

The difference between the total revenues received by a business and the total opportunity costs of all resources used in the production.