Refer to the scenario above. if the investor plans to invest a sum of $4,000, the net present value of Option C is:
A) -$1,236.36.
B) -$337.56.
C) $516.80.
D) $1,800.79.
C
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How does the increasing use of digital cameras affect the market for traditional camera film?
A) The quantity of traditional camera film demanded decreases. B) The demand curve for traditional camera film shifts to the left. C) The quantity of traditional camera film demanded increases. D) The demand curve for traditional camera film shifts to the right.
Economists often treat the economy's capital stock as fixed because
A) labor is a more important factor of production than capital, so economists ignore capital. B) it takes a long time for new investment and the scrapping of old capital to affect the overall quantity of capital. C) there is very little capital in the economy compared with the amount of labor. D) unless the interest rate changes, the capital stock doesn't change.
If banks face a problem in loan markets when bad credit risks are the ones most likely to seek bank loans, it is described as
A) moral hazard. B) moral suasion. C) adverse selection. D) fraud.
A direct restriction on the quantity of an import is called a tariff.
a. true b. false