Figure 18-10 -\Refer to Figure 18-10. Assume W₁ = $20 and W₂

question 110

Multiple Choice

Figure 18-10
-\Refer to Figure 18-10. Assume W₁ = $20 and W₂ = $22, and the market is always in equilibrium. A shift of the labor demand curve from D₁ to D₂ would

• A)increase the value of the marginal product of labor by $2.
• B)increase the value of the marginal product of labor by less than $2.
• C)decrease the value of the marginal product of labor by more than $2.
• D)not change the value of the marginal product of labor.

Understand the concept and significance of Net Present Value (NPV) in evaluating capital investments.

Be able to calculate the Net Present Value of various investment proposals using present value factors.

Comprehend the concept of the time value of money and its importance in capital budgeting decisions.

Understand how to determine and interpret the internal rate of return (IRR) for an investment.