Option Used For Calculating Opportunity Cost Of Capital


1. Of the following, which is most likely to be used to calculate the opportunity cost of capital on an investment?

A. The best available expected return offered in any investment available in the market.
B. The interest rate on 90 day bank bills.
C. The interest rate of any investments’ alternatives that are available
D. The best available expected return offered in the market on an investment of comparable risk and term to the cash flow being discounted.

2. Which of the following statements is False?

A. The actual return kept by an investor will depend on how the interest is taxed.
B. The equivalent after-tax interest rate is r(1- T)
C. The highest interest rate, for a given horizon, is the rate paid on Australian government securities with a similar term.
D. It is important to use a discount rate that matches both the term and the risk of the cash flows.


These short questions belong to Finance. The 1st question is about the option used for calculating opportunity cost of capital on an investment. The 2nd question is about finding a false statement.

Total Word Count NA

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.