If in the Third Quarter of 2012 Total Investment Spending

question 94

Multiple Choice

If in the third quarter of 2012 total investment spending was $4,768 billion and depreciation was $3,292 billion, then net investment was equal to

• A) $1,476 billion.
• B) $3,292 billion.
• C) $4,768 billion.
• D) $8,060 billion.

Understand the calculations related to present and future values of investments.

Grasp the concept of effective annual rate and its dependence on compounding periods.

Recognize the significance of the timing and amount of cash flows in determining the desirability of investments.

Understand the concept of opportunity cost in the context of investment decisions.

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