The Following Data Are Estimates Describing Ireland's Economy in 2006

question 67

Multiple Choice

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices) : 2006 2007
Consumption 84,000 89,000
Government expenditure 24,000 26,000
Investment 48,000 48,000
Exports 142,000 151,000
Imports 123,000 128,000
Subsidies 1,800 1,900
Taxes 500 500
In 2007, Ireland's net exports was ________ million euros.

• A) 23,000
• B) -23,000
• C) 279,000
• D) 149,100

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Definitions:

Required Rate of Return

The minimum rate of return on an investment deemed acceptable by an investor, considering the investment's risk.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.

Payback Period

Payback period is the duration required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

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.