A firms profit is = revenue - labor costs - capital costs. Its capital cost can
Question:
A firm’s profit is π = revenue - labor costs - capital costs. Its capital cost can be stated as its internal rate of return on capital, irr, times the value of its capital, pKK, where pK is the price of a unit of capital and K is the number of units of capital. What is the firm’s implicit rate of return on its capital?
Internal Rate of ReturnInternal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
We have revenue labor c...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
