Unlike other methods, present value analysis indicates that a project should be undertaken if the NPV is greater than zero regardless the income distribution.
A. True
B. False
C. Uncertain
A. True
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Which of the following is an example of a compensating differential?
a. Two workers with different levels of on-the-job training earn different salaries. b. Two workers whose jobs entail different working conditions earn different salaries. c. Two workers whose jobs require different levels of technical expertise earn different salaries. d. Two workers with different levels of natural ability earn different salaries.
The price index was 170 in the first year, 180 in the second year, and 195 in the third year. The inflation rate was about
a. 5.6 percent between the first and second years, and 7.7 percent between the second and third years. b. 5.9 percent between the first and second years, and 8.3 percent between the second and third years. c. 10 percent between the first and second years, and 15 percent between the second and third years. d. 80 percent between the first and second years, and 95 percent between the second and third years.
The introduction of a new technology that raises the marginal product of new capital will:
A. decrease real interest rates and increase the equilibrium quantity of saving supplied and demanded. B. increase real interest rates and decrease the equilibrium quantity of saving supplied and demanded. C. decrease real interest rates and the equilibrium quantity of saving supplied and demanded. D. increase real interest rates and the equilibrium quantity of saving supplied and demanded.
An individual's ________ surplus is the area ________ the ________ curve and above the ________ up to the quantity ________
A) consumer; under; demand; market price, the consumer buys. B) producer; under; supply; market price, the producer sells. C) consumer; above; supply; choke price, the consumer buys. D) producer; supply; under; choke price, the producer sells.