At a discount rate of 10 percent, what is the net present value of an investment expected to yield $1,000 per year (to be received at year end) for the next two years?
a. $1,859.41
b. $1,801.23
c. $1,735.54
d. $1,527.78
C
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All actions and purchases, even those of wealthy people, involve a sacrifice.
Answer the following statement true (T) or false (F)
If the Fed focuses on price stability, the aggregate demand curve will be relatively ________, which shows that aggregate expenditure is ________ to changes in the inflation rate
A) flat; very sensitive B) flat; very insensitive C) steep; very sensitive D) steep; very insensitive
If it costs View Your World, a high-end window manufacturer, $20 per window to install a higher quality glass in its windows and consumers will pay an additional $28 per window for the improvement, which of the following is true?
A) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. B) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. C) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. D) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
The Lojack car recovery system allows the police to track stolen cars. As a result, they not only recover 90% of Lojack-equipped cars that are stolen but also arrest many auto thieves and shut down many "chop shops" that take apart stolen vehicles to get at their used parts. Thus, Lojack provides both private benefits and positive externalities. If the government were to subsidize Lojack purchases, this would...