A Firm Should Make an Investment If the Expected Return

question 29

Multiple Choice

A firm should make an investment if the expected return is greater than

• A) the marginal cost of the investment.
• B) the fixed cost of the investment.
• C) the opportunity cost of the investment.
• D) the expected rate of inflation.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of several investments, typically expressed as a ratio or percentage.

Training Programs

Structured educational processes designed to enhance the knowledge, skills, and competencies of individuals in a specific area or job.

Non-Monetary Benefits

Non-monetary benefits refer to incentives or compensations provided to employees that do not involve direct cash payments, such as health insurance, flexible working hours, or company discounts.

Level 3 Evaluation

Level 3 Evaluation measures the behavioral change and extent of application of newly learned skills in the workplace following a training program, as part of the Kirkpatrick Model.