BUSI 530 UPDATED Exam Questions and CORRECT Answers
The opportunity cost of capital can best be described as:the expected rate of return given up by investing in a project rather than in the capital market The opportunity cost of capital is determined by the ______ of a project.risk What is the NPV of a project with an initial investment of $95, a cash flow in one year of $107, and a discount rate of 6%? (Be sure to record the initial investment as a negative number.)5.94 Reason: NPV = -$95 + ($107/1.06) = $5.94
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