A firm should make an investment only if
a. it is profitable in every year.
b. the present value of the profits exceeds the present value of the costs.
c. the present value of the revenues exceeds the present value of the costs.
d. there are no large losses in the early years.
c
You might also like to view...
According to Figure 6.1:
A. soup is a normal good.
B. soup is an inferior good.
C. soup is a Giffen good.
D. bread is an inferior good.
The problem of political instability has been greatest in which continent?
A. South America B. Europe C. Asia D. Africa
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. After firms can respond to the payroll tax, the per-hour wage paid by firms equals
A. $12. B. $10. C. $7. D. $5.
Which is the most accurate statement?
A. The Japanese and Chinese bear most of the blame for our huge trade deficit. B. Our trade deficit with China has been rising more rapidly than our trade deficit with Japan. C. Our combined trade deficits with Japan and China now total about $100 billion. D. Most economists agree that the best way to reduce our trade deficit would be to impose high tariffs on our imports from Japan and China.