The internal rate of return equals the cost of capital when
A) NPV = 0.
B) NPV > 0.
C) NPV < 0.
D) None of the above
A
Economics
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If the substitution effect is stronger than the income effect, an increase in real interest rates will lead to ________ in aggregate consumption and will lead to ________ in household saving
A) an increase; a decrease B) a decrease; a decrease C) a decrease; an increase D) an increase; an unclear change
Economics
Because of NAFTA, the U.S. shifts some of its imports from Europe to Mexico (a member of NAFTA). This is an example of
A) trade deflection. B) trade diversion. C) protectionism. D) rules of origin.
Economics