If a Project Has a Cost of $50,000 and a Profitability

question 3

Multiple Choice

If a project has a cost of $50,000 and a profitability index of .4, then:

• A) its cash inflows are $70,000.
• B) the present value of its cash inflows is $20,000.
• C) its IRR is 20%.
• D)its NPV is $20,000.

Recognize the varying views on landlords, entrepreneurs, and their economic roles as seen by various theorists.

Understand the principles of profit theories and their relevance in contemporary economics.

Understand the concept of profit within a capitalist society and its temporary nature due to competition and adaptation.

Grasp the economic principles and factors influencing land rent, including the concept of marginal land.

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Definitions:

Price Taker

A market participant that accepts the prevailing market prices and lacks the influence to change prices for goods or services.

Market Price

The ongoing rate at which a service or an asset is offered for buying or selling in a certain market.

Level Of Production

The quantity of goods or services produced within a given period by a company, industry, or country.

Market Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.