Refer to the Figure Below to Answer the Following Questions

question 108

Multiple Choice

Refer to the figure below to answer the following questions. Figure 7.1.1
The figure shows the market for shirts in Canada,where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.
-In Figure 7.1.1,with international trade,Canada ________ million shirts per year.

• A)imports 32
• B)imports 48
• C)exports 16
• D)exports 32
• E)imports 16

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Definitions:

Payback Period

The duration of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Discount Rate

The discount rate that's critical in the process of valuing future cash flows today, within the framework of discounted cash flow analysis.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Capital Budgeting

The process of planning and evaluating expenditures on assets whose cash flows are expected to extend beyond one year, like new machinery, equipment, or projects.