Use the Following to Answer Questions: Table: GDP Data -(Table: GDP Data) Using the GDP Data in the Table

question 142

Multiple Choice

Use the following to answer questions: Table: GDP Data $$\begin{array} { l l } \hline \text { 2000 GDP in } 2000 \text { dollars } & \$ 11.6 \text { trillion } \\1995 \text { GDP in } 2000 \text { dollars } & \$ 10 \text { trillion } \\1995 \text { GDP in } 1995 \text { dollars } & \$ 8.8 \text { trillion }\end{array}$$
-(Table: GDP Data) Using the GDP data in the table, how much did nominal GDP grow between 1995 and 2000?

• A) -14.5%
• B) 16%
• C) 13.63%
• D) 31.8%

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Definitions:

Net Present Value Method

A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the present value of expected future cash flows.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Rate of Return

This is a measure of the profitability of an investment, calculated as a percentage of the original investment.

Initial Investment

The amount of money used to start a project, purchase assets, or establish a business operation.