The total amount spent on new capital in a time period is equal to
A: wealth.
B: gross investment.
C: depreciation.
D: net investment.
A: wealth.
B: gross investment.
C: depreciation.
D: net investment.
举一反三
- A Chinese firm opens a watch factory in the United States. A: This is Chinese foreign direct investment and by itself increases Chinese net foreign investment. B: This is Chinese foreign direct investment and by itself decreases Chinese net foreign investment. C: This is Chinese foreign portfolio investment and by itself increases Chinese net foreign investment. D: This is Chinese foreign portfolio investment and by itself decreases Chinese net foreign investment.
- In which case is total expenditure in an economy not equal to total<br/>income? ____ A: If total saving is larger than total investment. B: If net exports are not zero. C: If inventory investment is negative. D: None of the above—they are always equal.
- Assume the net present value method is used to evaluate investment opportunities. A manager is faced with several investments, but only has funding for one investment. Which investment should be chosen?
- A capital investment’s internal rate of return( ). A: Must exceed the cost of capital in order for the firm to accept the investment. B: C: Statements c and d are correct. D: Changes when the cost of capital changes. E: Is similar to the yield to maturity on a bon F: Is equal to the annual net cash flows divided by one half of the project’s cost when the cash flows are an annuity.
- A capital investment’s internal rate of return ( ) A: Changes when the cost of capital changes. B: Must exceed the cost of capital in order for the firm to accept the investment. C: Statements c and d are correct. D: Is similar to the yield to maturity on a bond. E: Is equal to the annual net cash flows divided by one half of the project’s cost when the cash flows are an annuity.