A Project Requires $10 000 as Initial Investment and Will

question 6

Multiple Choice

A project requires $10 000 as initial investment and will earn a revenue of $3 000 per year over the next five years. Annual interest rate is 5.4%. What is the present worth of the project's benefits?

• A)$2 846
• B)$6 348
• C)$7 154
• D)$10 000
• E)$12 846

---

Definitions:

Resources Allocated

The distribution of resources among various uses or sectors in an economy to maximize efficiency and achieve strategic goals.

Households And Firms

The two primary actors in economic models where households provide labor and consume goods and services, while firms produce goods and services and hire labor.

Resources

Broadly refers to the inputs used to produce goods and services, including natural materials, human labor, capital, and technology.

Scarce

A situation in which available resources are limited in relation to the wants and needs of individuals or communities.