Which of the Following Orderings (Going from Highest to Lowest)is

question 87

Multiple Choice

Which of the following orderings (going from highest to lowest) is correct with respect to the percentage of U.S.GDP?

• A) (1)Government; (2)Consumer purchases; (3)Investment; (4)Foreign trade
• B) (1)Investment; (2)Government; (3)Consumer purchases; (4)Foreign trade
• C) (1)Investment; (2)Consumer purchases; (3)Government; (4)Foreign trade
• D) (1)Consumer purchases; (2)Investment; (3)Foreign trade; (4)Government
• E) (1)Government; (2)Consumer purchases; (3)Foreign trade; (4)Investment

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Definitions:

NPV

Net Present Value, a calculation used to determine the value of a project or investment by discounting future cash flows to the present.

Cash Flow

Total funds inflow and outflow within a business and its effect on liquid assets.

WACC

Weighted Average Cost of Capital; a calculation used to estimate the cost of financing a company's assets, blending debt and equity costs.

MIRR

Modified Internal Rate of Return, which adjusts for the differences in reinvestment rates of a project's cash flows.