What Is the Net Present Value (NPV)of a Project If

question 15

Multiple Choice

What is the net present value (NPV) of a project if the present value of cash inflow is $10,000 and the present value of cash outflows is $5,000?

• A) $2,000
• B) $5,000
• C) $10,000
• D) $15,000

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Definitions:

Best Response

In game theory, it is the strategy that yields the highest payoff for a player, given the strategies chosen by other players.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of all other players, resulting in no incentive for unilateral shifts.

Game of Chicken

A game theory model where two players head towards each other on a collision path; the one who swerves is considered 'chicken,' but if neither swerves, both face disastrous outcomes.

Simultaneous Game

A scenario in game theory where all players make their decisions at the same time without knowledge of the other players' choices.