A Firm Has a Total of 25 Workstations in Four

question 51

Multiple Choice

A firm has a total of 25 workstations in four different office buildings. This year it builds 3 new workstations and gets rid of 5 old ones. In this case, investment is equal to ________ and net investment is equal to ________.

• A) 3; 5
• B) 3; -2
• C) 3; 2
• D)5; 3
• E) 2;-2

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Definitions:

Market Price

The market's current selling or purchasing rate for a service or asset.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) every year until its maturity, at which point the principal is repaid.

Market Interest Rate

The prevailing rate of interest for securities and loans across the market, which can fluctuate based on supply and demand.

Interest Payment

The payment made to a lender by a borrower for the privilege of borrowing money, typically expressed as an annual rate.