Which of the following might be considered by top management of an organization when setting a Minimum Attractive Rate of Return (MARR)? (a) The amount of money available for investment, and the source and cost of these funds (i.e., equity funds or borrowed funds) (b) The number of good projects available for investment and their purpose (i.e., whether they sustain present operations and are essential, or whether they expand on present operations and are elective) (c) The amount of perceived risk associated with investment opportunities available to the firm and the estimated cost of administering projects over short planning horizons rather than long planning horizons (d) The type of organization involved (i.e., government, public utility, or private industry) (e) All of the above

Which of the following might be considered by top management of an organization when setting a Minimum Attractive Rate of Return (MARR)? (a) The amount of money available for investment, and the source and cost of these funds (i.e., equity funds or borrowed funds) (b) The number of good projects available for investment and their purpose (i.e., whether they sustain present operations and are essential, or whether they expand on present operations and are elective) (c) The amount of perceived risk associated with investment opportunities available to the firm and the estimated cost of administering projects over short planning horizons rather than long planning horizons (d) The type of organization involved (i.e., government, public utility, or private industry) (e) All of the above

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 6E

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