Which of the Following Is True About GNP

question 52

Multiple Choice

Which of the following is true about GNP?

• A)includes profits earned by a Mercedes factory in Alabama
• B)excludes profits earned by General Electric in India
• C)measures the market value of all goods and services produced by resources supplied the home country's residents and firms, regardless of the location of the resource
• D)stands for Generally Nice Products
• E)used by countries to classify the World Bank

---

Definitions:

Worst Case NPV

The lowest possible Net Present Value that an investment project can yield, considering the most adverse scenario.

Option Value

The value of an option, which includes intrinsic value and time value, reflecting the probability of the price movement of the underlying asset.

Abandonment Option

In project management and finance, the option to halt a project or investment if it becomes non-viable or unprofitable.

Improve NPV

Strategies or steps taken to increase the Net Present Value of an investment, thereby enhancing its profitability.