THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 79

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The residents of Austin,Texas,complain that parking fines given in their city are higher than the parking fines that are given in Houston.Independent random samples of the amounts paid by residents for parking tickets in each of two cities over the last four months were obtained.Assume the population variances are equal.These amounts were as follows:

-What is the mean of the parking fines issued in Houston?

• A)97.88
• B)146.75
• C)78.30
• D)117.40

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Definitions:

Project NPV

The difference between the present value of cash inflows and outflows of a project, used to assess its profitability.

Opportunity Costs

The potential benefits missed out on when choosing one alternative over another.

IRR

The Internal Rate of Return is a financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows.