A publisher is deciding whether or not to invest in a new printer. The printer would cost $500, and it would increase cash flows by $600 for the next two years. What is the present value of the cash flows from the investment?
a. $1100
b. $541
c. $600
d. $1041
a
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E(ui Xi) = 0 says that
A) dividing the error by the explanatory variable results in a zero (on average). B) the sample regression function residuals are unrelated to the explanatory variable. C) the sample mean of the Xs is much larger than the sample mean of the errors. D) the conditional distribution of the error given the explanatory variable has a zero mean.
Empirical studies show that countries with low standards are very successful at attracting foreign investment
Indicate whether the statement is true or false
Which of the following factors strengthens the case for policy activism?
A. flexible prices B. lack of real-business-cycles C. flexible wages D. sticky prices
Tudor's Deli and Catering could have sold their delivery van on December 31, 2010 for $16,000. If they could sell the same van on December 31, 2011, for $13,000, then the economic depreciation in 2011 for this van
A) is $13,000. B) is $16,000. C) is $29,000. D) is $3,000.