A firm is considering three projects. Each costs $1 million now. Project A will yield $400,000 a year for three years, beginning one year from now. Project B will yield $1.25 million three years from now, and Project C will yield $600,000 for two years,

beginning two years from now. If the interest rate is 8 percent, which of these projects should the firm undertake?

A) Project A
B) Project B
C) Project C
D) none of these


Answer: A

Economics

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Which of the following is TRUE of trends in the number of new U.S. patents?

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If it is a cultural norm to practice an afternoon "siesta" (nap), it is likely that the labor:

A. supply in that culture would be relatively lower at any wage. B. demand in that culture would be relatively lower at any wage. C. supply in that culture would be relatively greater at any wage. D. demand in that culture would be relatively greater at any wage.

Economics

The correlated random effects approach cannot be applied to models with many time-varying explanatory variables.

Answer the following statement true (T) or false (F)

Economics