A Company Would Consider All of the Following in Computing

question 10

Multiple Choice

A company would consider all of the following in computing the IRR of an investment, except

• A)predicted cash inflows over the life of the project.
• B)the cost of the project.
• C)depreciation expense on the assets of the project.
• D)present value factors.

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Definitions:

Marginal Benefit Curve

A visual chart illustrating the variation in consumer advantage as the amount of a product or service rises.

Private Market

A part of the financial market in which financial instruments and assets are traded that are not available on the public stock exchanges.

Marginal Social Benefit

The additional benefit received by society from the production or consumption of one more unit of a good or service.

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.