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Figure 9-5

question 140

Multiple Choice

Figure 9-5
Figure 9-5 -If the shift in the C + I + (X − IM) in Figure 9-5 was caused by a 80 dollar increase in investment, then the multiplier is A) 0 B) 2 C) 3 D) 4 E) 5
-If the shift in the C + I + (X − IM) in Figure 9-5 was caused by a 80 dollar increase in investment, then the multiplier is

Definitions:

After-Tax Cash Flows

After-tax cash flows are the net cash inflows and outflows of a business after taxes have been accounted for, used in analysis of investment projects.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often when the company is insolvent.

NPV

Net Present Value; a financial metric used in capital budgeting to analyze the profitability of an investment or project, calculated by the difference between the present value of cash inflows and outflows over a period of time.

Automated Machines

Mechanized devices programmed to perform tasks with minimal human intervention.

Figure 9-5 ​

Definitions:

Figure 9-5