Use the Table for the Question(s) Below

question 14

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

---

Definitions:

LRAC Curve

the Long-Run Average Cost curve, showing the lowest average cost at which any output level can be produced when all inputs are variable.

Increasing-Cost Industry

An industry where the costs of production increase as the output expands, often due to factors like resource depletion and higher input prices.

LRAC Curve

Long-Run Average Cost Curve, showing the lowest cost at which a firm can produce any given level of output in the long run, where all inputs are variable.

Increasing-Cost Industry

An industry in which production costs increase as firms enter the market, often due to limited resources or factors of production.