When Evaluating an Investment,the MNC Should Consider the ____________ Cash

question 10

Multiple Choice

When evaluating an investment,the MNC should consider the ____________ cash flows generated by the project.

• A)total
• B)variable
• C)incremental
• D)fixed

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as the production volume is increased.

Average Variable Cost Curve

A graph that displays how the variable cost per unit changes with changes in output level.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as the production level increases.

Average Total Cost

The total cost of production divided by the quantity of output produced; it combines all fixed and variable costs per unit of output.