Refer to the table below. If the discount rate is 4 percent and the cost of the investment is $40,000, what is the net present value of the investment?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) $44,469.77
B) $5,815.32
C) $45,815.32
D) $6,221.77
B) $5,815.32
You might also like to view...
Economists emphasize the importance of ____ in analyzing demand.
A. quantity B. market potential C. wants and needs D. price E. sales opportunities
With an increase in the demand for a good, if prices are not allowed to increase:
A) social surplus will be maintained at maximum. B) there will be no incentive for firms to increase the quantity supplied of the good. C) a surplus will occur in the market. D) there will be an increase in overall efficiency in the market.
Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. Then the central bank increases money growth as the result of an unannounced policy change
Under New Classical assumptions the likely short-run result is __________ output and __________ price level. A) rising; a rising B) rising; an unchanged C) unchanged; a rising D) unchanged; an unchanged
The long run is a period of:
A. at least one year. B. sufficient length to allow a firm to expand output by hiring additional workers. C. sufficient length to allow a firm to alter its plant size and capacity and all other factors of production. D. sufficient length to allow a firm to transform economic losses into economic profits by hiring better workers.