As the number of investments made by a firm increases, its internal rate of return -

Question

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increases because the level of savings will fall.

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declines due to diminishing marginal productivity.

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declines because the market rate of interest will fall, ceteris paribus.

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increases to compensate the firm for the current consumption foregone.

1.	As the number of investments made by a firm increases, its internal rate of return -
A.	declines due to diminishing marginal productivity.
B.	declines because the market rate of interest will fall, ceteris paribus.
C.	increases to compensate the firm for the current consumption foregone.
D.	increases because the level of savings will fall.
Answer» D. increases because the level of savings will fall.

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