The Purchase Price of a Piece of Property Is $70,000

question 15

Multiple Choice

The purchase price of a piece of property is $70,000.After analysis of the cash flows,expected sales price,and expected yield,the investor decides the deal has a present value (PV) of $80,000.What is the net present value (NPV) ,and should the investor take the deal?

• A)$10,000;Yes
• B)$10,000;No
• C)-$10,000;Yes
• D)-$10,000;No

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Definitions:

Oil Price Shocks

Sudden and significant changes in the price of oil, which can have wide-reaching economic effects on oil-producing and oil-consuming countries.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, at different price levels.

Macropolicy

Policies designed to influence the overall economy, focusing on macroeconomic factors like inflation, unemployment, and economic growth.

World Economy

An international system of economic activities and transactions that transcends national borders, involving the global interconnection of economies through trade, investment, and financial markets.