Which of the following statements is false? Select one: a. The investor's opportunity cost of capital is the best available market on an investment of comparable risk and term of the cash fl b. Interest rates we observe in the market will vary based on quo investment, and risk. c. The opportunity cost of capital is the return the investor forgoes new investment. This is incorrect; the correct answer is D. d. For a risk-free project, the opportunity cost of capital will typical rate of U.S. Treasury securities with a similar term.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Price-searcher Markets With Low Entry Barriers
Section: Chapter Questions
Problem 10CQ
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Which of the following statements is false?
Select one:
a. The investor's opportunity cost of capital is the best available e
market on an investment of comparable risk and term of the cash fl
b. Interest rates we observe in the market will vary based on quo
investment, and risk.
c. The opportunity cost of capital is the return the investor forgoes
new investment. This is incorrect; the correct answer is D.
d. For a risk-free project, the opportunity cost of capital will typical
rate of U.S. Treasury securities with a similar term.
Transcribed Image Text:Which of the following statements is false? Select one: a. The investor's opportunity cost of capital is the best available e market on an investment of comparable risk and term of the cash fl b. Interest rates we observe in the market will vary based on quo investment, and risk. c. The opportunity cost of capital is the return the investor forgoes new investment. This is incorrect; the correct answer is D. d. For a risk-free project, the opportunity cost of capital will typical rate of U.S. Treasury securities with a similar term.
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