You Are Given the Following Cash Flows

question 49

Multiple Choice

You are given the following cash flows.What is the present value (t = 0) if the discount rate is 12 percent?

• A) $3,277
• B) $4,804
• C) $5,302
• D) $4,289
• E) $2,804

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Definitions:

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business or economy.

Short Run

A period of time during which at least one of a firm's inputs is fixed, affecting the firm's capacity to adjust to demand changes.

Short Run

The short run is a period in economics where at least one factor of production is fixed, limiting the adjustments a firm can make to its inputs.