Which of the Following Investments Has the Highest Net Present

question 75

Multiple Choice

Which of the following investments has the highest net present value (NPV) ,given that the interest rate is 5.5%?

• A)one that pays $250 at the end of each of the next four years
• B)one that pays $500 at the end of next year and $500 in four years' time
• C)one that pays $250 at the end of next year and $750 in four years' time
• D)one that pays $200 at the end of next year,$200 at the end of the second year,and $300 at the end of the third and fourth years
• E)one that pays $250 at the beginning of each year for the next four years.

Learn how to construct and interpret Edgeworth boxes for various economic scenarios.

Identify Pareto optimal allocations and understand the conditions under which they occur.

Analyze the impact of initial allocations on the determination of competitive equilibrium prices and consumptions.

Understand how to model and solve for competitive equilibrium in various market settings.

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