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If the opportunity cost of capital for a project exceeds the Project's IRR, then the project has a(n)

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A negative externality or spillover cost occurs when?

teh total cost of producing a good exceeds the costs borne by the producer


If depreciation (consumption of fixed capital) exceeds domestic investment it can be concluded that?

If depreciation exceeds domestic investment, it indicates that the economy is losing more capital stock than it is replacing. This can lead to a decline in productive capacity over time, potentially hindering economic growth. As a result, the overall productivity and competitiveness of the economy may suffer, which could impact employment and income levels.


When does shortage and surplus occur?

A shortage occurs when quantity demand exceeds quantity supplied. A surplus occurs when quantity supplied exceeds quantity demanded.


What do you do when marginal costs exceeds marginal revenue?

When MC>MR, then there is an overallocation of resources. This usually happens with a negative externality. The government tries to taxes these businesses so that they will produce less. Therefore, a way to fix overallocation of resources is to tax that company and reduce their output.


What is the importance of capital in construction business?

Capital plays a crucial role in the construction business, as it is essential for funding various aspects of the construction process. It allows businesses to purchase materials, pay for labor, invest in equipment, and cover overhead costs. Adequate capital also provides the flexibility to take on larger projects and expand operations. In the construction industry, having sufficient capital can be the difference between successfully completing a project and facing delays or setbacks. It enables businesses to weather unexpected expenses, fluctuations in materials costs, or changes in project scope. Furthermore, having access to capital can improve a construction business's reputation and reliability, as it demonstrates financial stability and a capacity to deliver on commitments. This can lead to more opportunities for securing contracts and forming strategic partnerships within the industry. Overall, the importance of capital in the construction business cannot be overstated, as it underpins the ability to sustain operations, pursue growth opportunities, and deliver high-quality results.

Related Questions

When will a nation's capital stock decline?

when depreciation exceeds gross investment


When net exports are negative what is best?

when the imports exceeds the imports then net exports are negative and positive is best for country.


Which action is not an appropriate response when a negative variance exceeds the variance threshold?

hhu


Can any of the expenditure components ever be negative?

Yes, the expenditure components can be negative. This can be so if their value exceeds the amount of money that the owner has.


How can you have a negative real rate of return over the same period?

If the rate of inflation exceeds the nominal rate of return during the period in question, then the real rate of return can be negative.


A negative externality or spillover cost occurs when?

teh total cost of producing a good exceeds the costs borne by the producer


How many downees are in the world?

researchers at the headquaters of the down syndrome capital of America, predict that the population of downers exceeds 12 billion


When a project npv exceeds zero?

When a project's Net Present Value (NPV) exceeds zero, it indicates that the projected earnings (in present value terms) from the project surpass the expected costs, also in present value terms. This suggests that the project is likely to generate value for the investors and is considered a good investment opportunity. A positive NPV implies that the project is expected to contribute to the overall wealth of the stakeholders. Consequently, it is generally recommended to proceed with projects that have an NPV greater than zero.


If depreciation (consumption of fixed capital) exceeds domestic investment it can be concluded that?

If depreciation exceeds domestic investment, it indicates that the economy is losing more capital stock than it is replacing. This can lead to a decline in productive capacity over time, potentially hindering economic growth. As a result, the overall productivity and competitiveness of the economy may suffer, which could impact employment and income levels.


Is there any threshold limits for an OPC to mandatorily get converted into either private or public company?

In case the paid up share capital of an OPC exceeds Rs 50 lakh or its average annual turnover exceeds during the relevant period exceeds Rs 2 crore, then the OPC has to mandatorily convert into private or public company. Thanks & Regards Venture Care Team ask@venture-care.com


How do you spell exceeds?

That is the correct spelling of "exceeds" (is greater than).


What is it called when nitrogen taken into the body exceeds nitrogen losses?

When nitrogen taken into the body exceeds nitrogen losses, it is referred to as positive nitrogen balance. This usually occurs during periods of growth, recovery from illness, or when physical activity promotes muscle synthesis over breakdown.