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A project's opportunity cost of capital is:
Multiple Choice:
O the return that shareholders could expect to earn by investing in the financial markets.
O the return earned by investing in the project.
O equal to the average return on all company projects.
O designed to be less than the project's IRR.

Respuesta :

Zviko

Answer:

the return that shareholders could expect to earn by investing in the financial markets

Explanation:

Projects are financed from a joined pool of funds. The Cost of Capital is the minimum return that a project must offer before it can be accepted and this is determined by the return that shareholders could expect to earn by investing in the financial markets.

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