Energy Project Beta Has the Following Cash Flows:CF 0 -$4,000CF

question 69

Multiple Choice

Energy Project Beta has the following cash flows:CF 0 -$4,000CF 1 $0CF 2 $0CF 3 $1,000CF 4 $3,000CF 5 $7,000If this project has a required rate of return of 10%,will management accept or reject the project?NPV @ r =10% = $3,147 (rounded up)

• A)Management would reject the project because there are no cash flows greater than zero in years 1 and 2.
• B)Management would reject the project because the project has a NPV of $8,000.
• C)Management would reject the project because the project has a NPV of $3,147.
• D)Management would reject the project because the project has a NPV of $5,067.

Grasp the effects of expansionary and recessionary gaps on the economy.

Explain the role of price levels in determining short-run economic expansion or contraction.

Identify factors leading to changes in aggregate supply and demand, including policy decisions and environmental changes.

Understand the definition and causes of stagflation.

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Definitions:

Intellectual Disability

A developmental condition characterized by significant limitations in intellectual functioning and adaptive behavior.

Alfred Binet

A French psychologist best known for his role in developing the first intelligence test, the Binet-Simon Intelligence Scale.

Inborn Intelligence

refers to the cognitive abilities and potential that an individual possesses naturally, from birth, as part of their genetic inheritance.

Heritability

A measure of how much of the variation in a trait within a population can be attributed to genetic differences.