Tom?s Donuts can invest in a new espresso machine that costs $500 and will yield expected profits of $350 each year for two years. What is the present discounted value of the expected profits from this investment if the interest rate is 4%?
A. $323.59
B. $480.77
C. $660.13
D. $673.08
Answer: C
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In addition to fiscal policy, the other main tool used to affect aggregate demand is
A. trade policy. B. industrial policy. C. planning policy. D. monetary policy.
When the wage falls:
A. all workers will work more hours. B. all workers will work fewer hours. C. some workers will work more hours and some workers will work fewer hours, but on average, hours worked will fall. D. some workers will work more hours and some workers will work fewer hours, but we don't know whether average hours will increase or decrease.
Which of the following positions would a mercantilist support?
A. Trade in manufacturing goods is good for the United States. B. Imports to the United States from Japan are beneficial to the United States. C. Exports from Japan to the United Kingdom are beneficial to Japan. D. Movement of labor from the United Kingdom to the United States is beneficial to the United States.
For a perfectly competitive firm, price always equals marginal cost.
Answer the following statement true (T) or false (F)