The Appropriate Cost of Capital for a Project Depends on

question 30

Multiple Choice

The appropriate cost of capital for a project depends on ...

• A) the type of assets used in the project (that is,whether they are current or fixed assets)
• B) the interest rate on the firm's outstanding long-term bonds
• C) the type of security issued to finance the project
• D) the risk associated with the project

---

Definitions:

Energy Stored

The potential energy held by an object, substance, or system due to its position or state, which can be converted into work.

Pyruvate

Three-carbon product of glycolysis.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, producing ATP and NADH, and is the first step of cellular respiration in all living cells.

Fermentation

Anaerobic glucose-breakdown pathway that produces ATP without the use of electron transfer chains.