An Investment Will Pay You $100 in One Year and $200

question 30

Multiple Choice

An investment will pay you $100 in one year and $200 in two years.If the interest rate is 5%,what is the present value of these cash flows?

• A)$305.00
• B)$285.71
• C)$276.65
• D)258.32
• E)$272.11

---

Definitions:

Marginal Returns

The additional output or benefit received from producing one more unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product or service, a crucial concept for making economic decisions.

Average Total Cost

The total cost divided by the quantity produced, indicative of the cost per unit of output.

Average Fixed Cost

Fixed cost divided by output.