Use the Table for the Question(s)below

question 83

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows:

-Given the cash flows in the table above,the point at which the NPV profile crosses the vertical axis is:

• A)$6000
• B)-$867
• C)22.0%
• D)15.0%
• E)$0

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Long-Run Equilibrium

A state in economics where all factors of production are variable, leading to a situation where all firms in a competitive market make zero economic profit.

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.