Projects with a positive NPV create
a. economic profits since they earn a return higher than the company's cost of capital
b. economic profits since they earn a return lower than the company's cost of capital
c. accounting profits only since they earn a return higher than the company's cost of capital
d. accounting profits only since they earn a return lower than the company's cost of capital
a
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An increase in government expenditure can ________ potential GDP and an increase in taxes can ________ potential GDP
A) increase; never change B) increase; increase C) decrease; decrease D) never change; never change E) increase; decrease
Author A accepts a $5,000 advance from a publisher and a 10% royalty after 5,000 books are sold. Author B foregoes the publisher's advance and negotiates for a 15% royalty on all books sold
Author C decides to self-publish his book and keep 100% of all sales revenue. In what order of risk aversion (from most to least) would you rank these authors? A) Author A, Author B, Author C B) Author A, Author C, Author B C) Author B, Author A, Author C D) Author C, Author B, Author A