Which of the Following Actions Would Most Likely Have an External

question 172

Multiple Choice

Which of the following actions would most likely have an external benefit?

• A) eating a peanut butter sandwich
• B) throwing trash out your car window as you drive to class
• C) sleeping
• D) attending college
• E) developing a better marketing strategy for Honda

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Definitions:

MIRR

Modified Internal Rate of Return, a financial measure used to evaluate the attractiveness of investments, taking into account the cost of capital and the reinvestment rate.

Cost of Capital

A minimum profit rate a business has to achieve on its ventures to sustain its market price and appeal to investors.

MIRR

Modified Internal Rate of Return, a financial measure used to evaluate the profitability of investments, adjusting for differences in cash flow timing and reinvestment rates.

Cost of Capital

The rate of return that a company needs to earn on its investment projects to maintain its market value and satisfy its investors and creditors.