The ________ is the discount rate that equates the present value of the cash inflows with the initial investment

A) payback period
B) net present value
C) cost of capital
D) internal rate of return

D

Business

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A small refrigeration shop stocks up on electric motors from a catalog supplier located in the Midwest. The price of the motors varies depending on the quantity purchased; the price breaks are shown in the table

The refrigeration shop knows it will need around 600 motors for the coming season and that it will cost them about $40 to place an order. Storage cost for the motors is $10 each. In previous years they have bought all 600 at once and they are considering doing this again. What order quantity would you advise and how much can they save using your recommendation instead of their one order per year strategy? Quantity Price/unit 1-49 $35.00 50-99 $34.00 100-499 $33.00 500 or more $30.00 What will be an ideal response?

Business

Refer to Instruction 10.1. The cost of a put option to CVT would be:

A) $52,500. B) $55,388. C) $58,275. D) There is not enough information to answer this question.

Business