The required rate of return multiplied by the investment is the ________.
A) sunk cost of the investment
B) historical cost of the investment
C) imputed cost of the investment
D) return on sales

Question

Quizplus · Accepted Answer

The required rate of return multiplied by the investment is the imputed cost of the investment, which represents the opportunity cost of investing in one option versus another. Sunk cost refers to costs that have already been incurred and cannot be recovered, historical cost refers to the original cost of acquiring an asset, and return on sales is a measure of profitability.

The Required Rate of Return Multiplied by the Investment Is