Assume the net present value method is used to evaluate investment opportunities. A manager is faced with several investments, but only has funding for one investment. Which investment should be chosen?
举一反三
- Countries with A: strong investment opportunities should invest little at home and channel their savings into more productive investment activity abroad. B: strong investment opportunities should invest more at home and less abroad. C: weak investment opportunities should invest more at home. D: weak investment opportunities should invest little abroad.
- A Chinese firm opens a watch factory in the United States. A: This is Chinese foreign direct investment and by itself increases Chinese net foreign investment. B: This is Chinese foreign direct investment and by itself decreases Chinese net foreign investment. C: This is Chinese foreign portfolio investment and by itself increases Chinese net foreign investment. D: This is Chinese foreign portfolio investment and by itself decreases Chinese net foreign investment.
- In which of the following situations must national saving rise? A: domestic investment increases and net foreign investment decreases. B: domestic investment decreases and net foreign investment increases. C: both domestic investment and net foreign investment increase. D: net exports decrease and domestic investment is unchanged.
- The most valuable investment given up if an alternative investment is chosen is a(n): A: salvage value expense. B: net working capital expense. C: sunk cost. D: opportunity cost.
- Which is better for the arts, private investment or government funding?