An investment should be undertaken
A. any time the present value of the expected income stream associated with the investment is positive.
B. if the present value of the costs of the investment project exceed the present value of the expected returns from the investment project.
C. if the present value of the expected income stream associated with the investment is less than the full cost of the investment project.
D. if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.
Answer: D
You might also like to view...
Is "utility" another word for the cost we give up when we consume a good?
What will be an ideal response?
In a competitive market equilibrium the ________ equals the ________ of the last unit sold
A) marginal benefit; marginal cost B) total profit; marginal benefit C) profit; selling price D) total cost; marginal cost
Number of workersUnits of output00110230344455
Refer to Table 5.1, which gives a firm's production function. Assume that all non-labor inputs are fixed. The marginal product of the fourth worker is:
A. 12 units. B. 11 units. C. 5 units. D. 0 units.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.