When the NPV of an Investment Is Positive, Then the IRR

question 50

Multiple Choice

When the NPV of an investment is positive, then the IRR will be:

• A)Equal to the opportunity cost of capital
• B)Greater than the opportunity cost of capital
• C)less than the opportunity cost of capital
• D)Less than or equal to the opportunity cost of capital

Interpret graphical representations of budget constraints, indifference curves, and demand curves.

Distinguish between the substitution effect and the income effect on consumer choice.

Identify conditions under which goods are substitutes or complements based on consumer preferences.

Understand the theoretical underpinnings of consumer choice theory in the context of demanding firm products.

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Definitions:

Motherboard

A special circuit board in the system unit that contains the central processing unit, the memory (RAM) chips, and the slots available for expansion cards; all of the other boards (video cards, sound cards, and so on) connect to it to receive power and to communicate.

Processor Market

Refers to the industry and commerce surrounding the development, manufacture, and distribution of central processing units (CPUs) and related technologies.

Overclocking

Running the central processing unit at a speed faster than the manufacturer recommends.

Volatile Storage

Temporary storage, such as in random access memory. When the power is turned off, the data in volatile storage is cleared out.