Dynaflex Corp. is considering an investment project that costs $950 today. It expects the project will yield income of $350 at the end of years 1, 2, and 3. The interest rate must be ________ for the firm to undertake the project.
A. no more than 5%
B. exactly equal to 10.5%
C. at least 8%
D. It is indeterminate from the given information.
Answer: A
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The data in the table above are the U.S. balance of payments. The sum of the current account plus capital and financial account plus official settlements account is equal to
A) $0. B) -$335 billion. C) $140 billion. D) -$60 billion.
A fall in the demand for U.S. exports would result in a rise in the exchange rate when
a. there is no capital mobility and exchange rates are allowed to float. b. there is capital mobility. c. exchange rates are allowed to float. d. the country has a balance of payments surplus. e. both c and d.
Table 34-4 ? Quantity Quantity Quantity Quantity ? Price per Demanded Supplied Demanded Supplied TV in United States in United States Japan Japan (dollars) (thousands) (thousands) (thousands) (thousands) 100 100 10 100 25 200 85 20 85 50 300 70 30 70 70 400 60 40 60 80 500 50 50 50 90 600 40 60 40 100 700 30 70 30 110 800 20 80 20 120 Table 34-4 presents the demand and supply schedules for television sets in Japan and the United States. If Japan and the United States trade with each other, which country will export television sets and how many?
A. Japan will export 20,000 television sets to the United States. B. Japan will export 30,000 television sets to the United States. C. The United States will export 20,000 television sets to Japan. D. The United States will export 40,000 television sets to Japan.
An increase in taxes on labor income shifts the labor supply curve ________, and the ________
A) leftward; after-tax wage rate falls B) rightward; before-tax wage rate rises C) leftward; before-tax wage rate does not change D) leftward; after-tax wage rate rises E) leftward; after-tax wage rate does not change