ZZL Corporation has the opportunity to undertake an investment project that will cost $20,000 today. If the interest rate is 20 percent and if the project will yield the company $30,000 in 3 years, then ZZL will undertake the project
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Which one of the following statements is TRUE for Norway, a non-euro country?
A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. B) Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. C) Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. D) Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. E) Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.
The multiplier effect suggests that:
A. a ripple effect occurs from one person's initial spending. B. government spending $1 will create more than a $1 increase in GDP. C. a tax cut will increase GDP by more than the amount of the initial tax cut. D. All of these are true.
Which of the following examples best reflects a perfectly competitive market?
a. Sonya raises her price for oranges above the market price to make a larger profit. b. Pierre raises his price for grapes, but he still keeps it below to market price to make a larger profit. c. Mark refuses to raise his price for apples to $5 even though the market price is $5. d. Jane refuses to lower her price for figs to $4 because she can sell as much at the higher market price.
Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
Refer to Table 7.2. Which technology is the least capital intensive?
A. A B. B C. C D. D