The Net Present Value of an Investment Is ________

question 1

Multiple Choice

The net present value of an investment is ________.

• A)the present value of all benefits (cash inflows)
• B)the present value of all benefits (cash inflows)minus the present value of all costs (cash outflows)of the project
• C)the present value of all costs (cash outflows)of the project
• D)the present value of all costs (cash outflow)minus the present value of all benefits (cash inflow)of the project

---

Definitions:

Blocked Entry

A situation where new firms are unable to enter an industry due to high barriers to entry, such as high start-up costs or stringent regulations.

Oligopolistic Industry

A market structure characterized by a small number of large firms dominating the industry, with significant barriers to entry for new competitors.

Retail Grocery

A business sector focused on selling food and other household items directly to consumers.

Automobiles Production

The process and industry involved in designing, manufacturing, marketing, and selling motor vehicles.