Use the Table for the Question(s)below

question 57

Multiple Choice

Use the table for the question(s) below.
-If the risk-free interest rate is 10%,then the NPV for Eenie is closest to:

• A)-3.64
• B)2.73
• C)3.18
• D)3.64

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Definitions:

Nominal GDP

The gross domestic product measured at current market prices, without adjusting for inflation or deflation.

Real GDP

Measures the value of all final goods and services produced within a country in a given period, adjusted for inflation.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, deflating out the effects of inflation.

Nominal GDP

The gross domestic product measured at current market prices, not adjusted for inflation, representing the value of all finished goods and services produced within a country's borders in a specific time period.