The Firm in the Table Below Produces Denim Jeans and Each

question 20

Multiple Choice

The firm in the table below produces denim jeans and each unit of capital represents one sewing machine.The MRP for each of machines 10 through 14 is provided.Each sewing machine delivers a stream of MRPs beginning one year from now,for a total of 2 years.Assume that after 2 years each sewing machine is worth nothing. $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Sewing Machines }\end{array} & \text { Annual MRP } \\\hline 10 & \$ 2000 \\\hline 11 & \$ 1800 \\\hline 12 & \$ 1600 \\\hline 13 & \$ 1400 \\\hline 14 & \$ 1200 \\\hline\end{array}$$ TABLE 15- 2
-The present value of a given future stream of benefits will be lower when the benefits are and the interest rate is .

• A)equalized over a ten- year period; zero
• B)more distant in time; lower
• C)nearer in time; lower
• D)more distant in time; higher
• E)accruing in the first time period only; lower

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Definitions:

Osteoporosis

A bone disease characterized by decreased bone mass and density, leading to an increased risk of fractures.

Bone Density

The amount of mineral matter per square centimeter of bones, used as an indicator of osteoporosis and fracture risk.

Fractured Clavicle

A break in the collarbone, which is a common injury resulting from falls or direct impact to the shoulder area.

Moro Reflex

An automatic response in infants when they feel as if they are falling, involving spreading out the arms, unspreading them, and crying.