From the View of the Company as a Whole,managers Should

question 48

Multiple Choice

From the view of the company as a whole,managers should accept investment projects that earn more than the ________.________ should not be used for investment decisions.

• A) return on investment; Return on sales
• B) return on sales; Capital turnover
• C) cost of capital; Return on investment
• D) capital turnover; Return on sales

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Definitions:

Personal Consumption Expenditures

The component of a nation's economy that includes the total amount spent by individuals and households on goods and services.

Market Value

The current price at which an asset or service can be bought or sold in the market.

Net Domestic Investment

The total investment in a country's economy in a given year, minus the depreciation on existing capital.

Gross Domestic Investment

The total amount of money that is invested within a country’s borders in the form of capital purchases and investments in construction and inventory changes.