Author Question: Suppose the Kwik Print Company considers an investment project that involves the purchase of a ... (Read 19 times)

neverstopbelieb · **on:** Jun 30, 2018

Suppose the Kwik Print Company considers an investment project that involves the purchase of a copier with an expected output of 4,000 . If the firm has to borrow 3,000 and the rate of return is 11.1 percent, then the interest rate associated with the loan must be 20 percent.
a. True
b. False
Indicate whether the statement is true or false

Question 2

The opportunity cost of an item is:
a. greater during periods of inflation and lower during periods of deflation.
b. the highest valued alternative you give up to get that item.
c. the value of all available alternatives you sacrifice to get that item.
d. always equal to the dollar value of the item.