If the interest is 5%, should the firm undertake the investment?
a. Yes, since NPV=0
b. Yes, since NPV<0
c. Yes, since NPV>0
d. No, since NPV=0
c
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A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $30,000. The CPI was 1.68 in 2005. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2005 graduate's job.
A. more; more B. more; less C. less; more D. less, less
Someone who owns stock in a drug company that suddenly and unexpectedly reveals it has found an effective vaccine against AIDS will make a profit on the stock
A) at once. B) only if she hangs on to the stock for a number of years. C) only if she sells the stock. D) only when the dividends actually start to increase. E) when total revenue exceeds all costs, including research and development costs.
Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?
a. Taxes on pollution b. Voluntary compliance c. Tradable emissions permits d. Direct controls like legal ceilings
Assuming that labor is the only variable input, if society values a good ________ it costs firms to hire the workers to produce that good, the good ________ be produced.
A. equal to what; will not B. more than; will not C. more than; will D. less than; will