If Investment Is Autonomous,which of the Following Is Least Likely

question 106

Multiple Choice

If investment is autonomous,which of the following is least likely to have an effect on the level of investment?

• A)a change in the rate of interest
• B)a change in the level of income
• C)a change in the level of optimism or pessimism about the economy as a whole
• D)a change in the expected profitability of investment projects
• E)a change in the rate of inflation

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Definitions:

Net Cash Inflows

The amount of cash received from operations, investments, and financing activities, minus the cash outflows for the same activities.

Salvage Value

The predicted value at which an asset can be sold after its useful life concludes.

Working Capital

The difference between a company's current assets and current liabilities, reflecting its short-term financial health and operational efficiency.

Net Present Value

A calculation that compares the present value of cash inflows with the present value of cash outflows over a period of time.