Under the NPV method,the rate of return required to satisfy the firm's investors is the
A)opportunity cost.
B)internal rate of return.
C)cost of capital.
D)accounting return on investment.

Question

Quizplus · Accepted Answer

The cost of capital is the rate of return required to satisfy the firm's investors, which is used in the NPV method to discount future cash flows. The opportunity cost refers to the cost of forgoing the next best alternative, the internal rate of return is the discount rate at which the NPV is zero, and accounting return on investment is a measure of profitability that does not consider the time value of money.

Under the NPV Method,the Rate of Return Required to Satisfy