Typically, a capital expenditure project will result in:
a. a cash flow stream to the firm
b. a cash outflow from the firm
c. an initial (one-year) outflow followed by a series of cash inflows
d. for long projects, an initial five-year outflow followed by a series of cash inflows
c
You might also like to view...
Aggregate surplus:
A. equals consumers' total willingness to pay for a good less firms' total avoidable cost of production. B. equals consumers' total willingness to pay for a good plus firms' total avoidable cost of production. C. captures the total benefit created by the production and consumption of the good. D. captures the total cost created by the production and consumption of the good.
GNI and PPP data are useful because they provide a dynamic analysis of economic development.
a. true b. false
Answer the following statement(s) true (T) or false (F)
1. Bilal has a degree in advertising but has chosen to pursue his dream of being a painter instead of getting an advertising job. The money that Bilal could have earned in advertising is an implicit cost of his painting business. 2. One difference between accounting profits and economic profits is that accounting profits tell whether the firm has covered its monetary costs, but economic profits tell whether the business is worth pursuing. 3. Economic profits are larger than accounting profits because they consider all the monetary costs associated with management and administration and not just the costs of production. 4. Sunk costs are treated as implicit costs because they are not visible and are not considered when making economic decisions. 5. If a firm decides to move to a new location before its lease expires, it can recover the sunk costs associated with the lease agreement.
Customer service representatives who have lost their jobs as a result of call centers being outsourced to India are an example of:
A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. voluntary unemployment.