You Are Considering Two Projects with the Following Cash Flows

question 38

Multiple Choice

You are considering two projects with the following cash flows: Calculate the present value of each project's cash flows, given an 8% rate of return?

• A) Project A = $10,605; Project B = $10,923.
• B) Project A = $8,605; Project B = $8,923.
• C) Project A = $6,605; Project B = $6,923.
• D) Project A = $4,605; Project B = $4,923.
• E) Project A = $2,605; Project B = $2,923.

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Definitions:

Macroeconomics

Macroeconomics is the branch of economics that examines the behavior and performance of an economy as a whole, focusing on aggregate outcomes such as economic growth, inflation, and unemployment.

Expenditure

The amount of money spent by an individual, organization, or government on goods and services.

GDP

GDP, or Gross Domestic Product, measures a country's economic output in terms of the total value of all goods and services produced within its borders in a specific time period.

Microeconomics

The study of how households and firms make decisions and how they interact in markets.