Examlex

Solved

If an Increase in the Price of Good X Causes

question 140

Multiple Choice

If an increase in the price of good X causes the demand for good Y to decrease, this indicates that


Definitions:

NPV

Net Present Value; a calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.

WACC (Weighted Average Cost of Capital)

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including equity and debt.

IRR (Internal Rate of Return)

The rate of return that brings the total net present value of all cash flows from a given project to zero.

Independent Project

A project whose cash flows are not influenced by the acceptance or non-acceptance of other projects, allowing it to be evaluated on its own merits.

Related Questions