A Project Is Expected to Last Ten Years with an Initial

question 85

Multiple Choice

A project is expected to last ten years with an initial cost of $10,000.00. Assuming the present value payback method produces a value of 7.25 years and there are no additional costs beyond the initial cost, the PI is ____.

• A)less than 1.0
• B)greater than 1.0
• C)equal to 1.0
• D)undetermined

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Definitions:

Aggregate Demand

The total demand for goods and services within a particular market, at a given period of time.

Stabilization Policy

Government policies aimed at maintaining economic stability by controlling inflation, reducing unemployment, and promoting growth.

Aggregate Output

The total value of all goods and services produced in an economy during a specific period, often used interchangeably with gross domestic product (GDP).

Stabilization Policy

A government strategy aimed at maintaining economic stability by adjusting spending levels and tax rates.