At an interest rate of 6 percent, if an investment project was expected to yield $1,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the project only as long as the cost remained less than
a. $1,000.
b. $2,577.
c. $2,673.
d. $3,000.
C
You might also like to view...
Increased profits provide more internal funds to finance capital investments and a major factor in lenders' and investors' decisions to provide external funds to the firm
Indicate whether the statement is true or false
In order to analyze migration in the long run, it is appropriate to use:
a. the specificfactors model with free movement of labor across borders. b. the HeckscherOhlin model with free movement of labor across borders. c. the Ricardian model with no movement of labor across borders. d. the PPF modified for three goods, three factors of production (all fixed), and three nations.
What could low productivity growth in a country suggest?
What will be an ideal response?
________ portion of actual world trade patterns results from different factor endowments between countries.
A. No B. A significant C. A small D. A negative