-Refer to Figure 7-1.Based on the Figure

question 128

Multiple Choice

-Refer to Figure 7-1.Based on the figure,

• A) since 1990,the price level has fallen
• B) the price level was the highest in 1980
• C) since 1965,the price level has risen sometimes and fallen other times
• D) since 1965,the price level has risen every year
• E) cannot tell what has happened to the price level since 1965

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Definitions:

Future Net

The projected net value or income of an investment or business activity after accounting for all anticipated costs and revenues.

Present Values

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows over a period of time.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.