The net present value (NPV) is ________.

A) present value of the future operating profits from an investment plus the present value of the cost of the investment
B) future operating profits from an investment minus the cost of the investment
C) present value of the future operating profits from an investment minus the present value of the cost of the investment
D) future operating profits from an investment plus the cost of the investment


C) present value of the future operating profits from an investment minus the present value of the cost of the investment

Economics

You might also like to view...

Government controls of price, output, entry of new firms, and quality of service in industries where monopoly appears desirable are known as

a. antitrust regulation b. economic regulation c. social regulation d. antimerger regulation e. consumer advocacy regulation

Economics

If the economy is operating at an output level beyond its full-employment capacity, which of the following would most likely direct the economy back to long-run equilibrium?

a. improvements in technology b. a decrease in the real rate of interest c. an increase in resource prices d. a decrease in resource prices

Economics

In situations where businesses who choose to discriminate because they are prejudiced are few in an industry, discrimination:

A. will persist in an efficient market. B. will be eliminated by the competitive market. C. will persist because customers will not give them patronage. D. None of these is true.

Economics

Consider a many-worker economy with two goods. With access to international trade, a country can consume the greatest amount of both goods by producing at the point where the

A. production possibilities curve intersects the horizontal axis. B. slope of consumption possibilities curve is greater than the slope of the production possibility curve. C. consumption possibilities curve intersects the production possibility curve. D. slope of production possibilities curve is equal to slope of consumption possibilities curve.

Economics