Fill in the Lettered Blanks in the Following Table

question 21

Essay

Fill in the lettered blanks in the following table: $\begin{array}{lccc}&\text { Investment A}& \text { Investment B}& \text { Investment C }\\ \text { Amount of investment } & £ 40,000 & \text { (a) } & £ 20,000 \\ \text { Economic life in years } & 10 & 5 & 8 \\ \text { Annual cash flow } & £ 5,000 & \text { (b) } & £ 2,500 \\\text { Payback period in years } & \text { (c) } & 4 & \text { (d) } \\\text { Present value of cash flows } & (\mathrm{e}) & £ 33,000 & \text { (f) } \\\text { Net present value } & £ 5,500 & £ 3,000 & (£ 1,000)\end{array}$

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Definitions:

Profit Earn

The income a business receives after all expenses and costs are subtracted from total revenue.

Price Discrimination

The practice of charging different prices for the same product or service to different consumers, based on their willingness to pay.

Pure Monopoly

refers to a market structure where a single company or entity has exclusive control over a particular good or service, eliminating direct competition.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and opportunity costs.