Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company. Assume an interest rate of 5%. Which project has the highest internal rate of return?
A. Project A
B. Project B
C. Project C
D. It cannot be determined from the information given.
A. Project A
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Which of the following statements describes the experiences of Corning, Inc since it was established in 1851?
A) long-run growth interrupted by periods of business cycle recession B) strong uninterrupted growth in demand C) little or no growth in the long run, but very vulnerable to the business cycle D) little or no growth in the long run, and unaffected by the business cycle
Colleges and universities often do not pay salaries that are market-driven. For example, it is typical for a history professor to make the same as an economics professor. What kinds of problems are likely to result from this kind of a pay scale?
What will be an ideal response?
Government regulation of industry is designed to separate __________ from __________
a. profit maximization; efficiency b. efficiency; output c. price making; the firm d. monopolies; competitors e. bigness; profitability
If Camila's income rises by 20 percent, and, as a result, she purchases 40 percent more dresses, her income elasticity for dresses is
a. 0.5. b. 1.0. c. 2.0. d. Not enough information is given to answer this question.