The Opportunity Cost of Capital

question 14

Multiple Choice

The opportunity cost of capital:

• A) is the interest rate that the firm pays on a loan from a financial institution.
• B) is the maximum acceptable rate of return on a project.
• C) is the minimum acceptable rate of return on a project.
• D) is always less than 10%.

---

Definitions:

Lower Self-control

A lesser ability to regulate one's emotions, thoughts, and behaviors in order to achieve long-term goals.

Happiness

A state of well-being and contentment characterized by positive emotions ranging from satisfaction to intense joy.

Stress Response

The body's reaction to a challenge or demand, characterized by physiological and psychological changes aimed at adapting to stressors.

Rejection

The act of refusing to accept, consider, submit to, take for some purpose, or use.