From society's viewpoint, a particular new investment project is always worthwhile if:
A)the cost of borrowing is very low.
B)the new project is more roundabout than the present method of production.
C)it will increase real GDP.
D)it will increase real NDP.
E)its rate of return is greater than the market rate of interest.

Question

Quizplus · Accepted Answer

Society's viewpoint would consider a new investment project to be worthwhile if its rate of return is greater than the market rate of interest, as this indicates that the project is profitable and will generate a return on investment. The other options, such as low cost of borrowing or increases in real GDP or NDP, may also be factors to consider but are not the sole determinants of whether a project is worthwhile.

From Society's Viewpoint, a Particular New Investment Project Is Always