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Use the following to answer questions:
-(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the price of good X is $5 per unit, the price of good Y is $1 per unit, and you have $10 to spend on both goods. To maximize utility, you would consume _____ unit(s) of X and _____ unit(s) of Y.
Net Present Value
A valuation method that calculates the present value of future cash flows generated by an investment, minus the initial investment cost.
Cash Flows
The movement of money into and out of a business, project, or financial product, considered essential for assessing the health and sustainability of an entity.
Return on Investment
A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.
Capital Budgeting
The process businesses use to evaluate and select long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects.
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