The rate of discount which equilibrates the cost of capital good s and the expected future returns from the capital good is known as

Related MCQs

• The reason that finding the present value of a future sum of money requires us to discount it, is that:
• The values of the future net incomes discounted by the cost of capital are called
• Where capital availability is unlimited and the projects are not mutually exclusive, for the same cost of capital, following criterion is used
• If the internal rate of return (r) is less than the cost of capital,the project should be
• ___________ on capital is called ‘Cost of capital’.
• When using the net present value and the internal rate of return to evaluate capital projects:
• If interest rates rise, the present value of any future earnings is bound to:
• If capital is available in large proportion and labour is less, then that economy is known as
• The labour market equilibrium determines the wage rate and
• The labor market equilibrium determines the wage rate and