Diamond Enterprises Is Considering a Project That Will Produce Cash

question 9

Multiple Choice

Diamond Enterprises is considering a project that will produce cash inflows of $238,000 a year for three years followed by $149,000 in year four. What is the internal rate of return if the initial cost of the project is $749,000?

• A) 3.43 percent
• B) 4.29 percent
• C) 5.81 percent
• D) 6.32 percent
• E) 7.55 percent

Understand the interplay between domestic prices, world prices, and trade policies in determining market outcomes.

Calculate equilibrium prices and quantities in a market with and without trade.

Evaluate the impact of tariffs on consumer surplus, producer surplus, tariff revenue, and total surplus.

Understanding the impact of free trade on consumer surplus, producer surplus, and total surplus.