Other things being equal, the higher the cost of capital
A) the higher the NPV of a project.
B) the higher the IRR of the project.
C) the lower the NPV of the project.
D) The cost of capital has no effect on the NPV of the project.
C
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A ten-year-old goes to a baseball convention this week and purchases a newly-autographed Barry Bonds baseball for $100. How would this affect GDP?
A) It wouldn't. B) GDP would increase by $10—reflecting the market price of the ball itself. C) GDP would increase by $90—reflecting the market price of Bonds' autograph. D) GDP would increase by $100—reflecting the market price of the autographed ball. E) GDP would have increased were the autographed ball purchased by somebody 16 years or older.
A barter economy
A) cannot be a market economy. B) is an economy without monetary exchange. C) is an economy with no business firms. D) is not a competitive economy.