If the Annual Cash Flows Are an Annuity (Equal Each

question 9

Multiple Choice

If the annual cash flows are an annuity (equal each period) , payback is calculated as

• A)Annual net cash inflows/Capital investment.
• B)Capital investment/Annual net cash inflows.
• C)Annual net cash inflows/Present value factor.
• D)(Annual net cash inflows - Annual depreciation)/Capital investment.

Distinguish between expenditures included and excluded in the consumption component of GDP.

Understand the role of government spending, net exports, and investments in GDP calculation.

Recognize how GDP reflects the economic performance of a country.

Understand the double-entry bookkeeping system used to track the economy in relation to GDP.

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