Which One of the Following Is the Primary Determinant of an Investment's

question 44

Multiple Choice

Which one of the following is the primary determinant of an investment's cost of capital?

• A)Life of investment
• B)Initial cash outlay
• C)Level of risk
• D)Source of funds used for the investment
• E)Investment's net present value

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Definitions:

Disposable Income

The amount of income available to households after taxes and social security charges have been deducted, available for spending or saving.

Consumption

The total amount of goods and services consumed by households and organizations within an economy.

Autonomous Consumption

The level of consumption that occurs when income is at zero, representing the expenditures that consumers must make even when they have no income.

Disposable Income

The fiscal resources available to households for allocation towards saving and spending post income tax adjustments.