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If You Qualify for Food Assistance and Receive an Earned

question 5

Multiple Choice

If you qualify for food assistance and receive an Earned Income Tax refund from the federal government each year,you are most likely to be:


Definitions:

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new plant, worthwhile.

Capital Rationing

In capital budgeting, the process of allocating available capital among projects to maximize total NPV.

IRR

The Internal Rate of Return; a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Capital Constraints

Limitations on the amount of capital a company or economy can obtain, often leading to restrictions on growth and investment.

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