A Project's Opportunity Cost of Capital Is

question 20

Multiple Choice

A project's opportunity cost of capital is:

• A) the foregone return from investing in the project.
• B) the return earned by investing in the project.
• C) equal to the average return on all company projects.
• D)designed to be less than the project's IRR.

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Definitions:

Conscience

An inner feeling or voice viewed as acting as a guide to the rightness or wrongness of one's behavior.

Defense Mechanisms

Psychological strategies brought into play by individuals to cope with reality and maintain self-image.

Parental Influence

The effect that parents have on the development of their children’s attitudes, behaviors, and values.

Peer Influence

The impact that the attitudes, behaviors, and norms of an individual's peer group have on their own behavior and attitudes.