Refer to the Following Table When Answering
Table

question 8

Multiple Choice

Refer to the following table when answering
Table 7.2
$$\begin{array} { c c c c } \hline & \begin{array} { c } \text { Separation } \\\text { rate }\end{array} & \begin{array} { c } \text { Finding } \\\text { rate }\end{array} & \begin{array} { c } \text { Labor } \\\text { force }\end{array} \\\hline 2015 & 2 \% & 20 \% & 130 \\2016 & 2.5 \% & 15 \% & 100 \\\hline\end{array}$$
-Consider the data in Table 7.2. Using the "bathtub model" of unemployment, in 2016 the natural rate of unemployment is:

• A) 14.3 percent
• B) 14.6 percent
• C) 0.2 percent
• D) 85.7 percent
• E) 16.7 percent

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Definitions:

Project's Liquidity

An assessment of a project's ability to convert its assets to cash quickly without significant loss in value, to meet short-term obligations.

WACC

Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its security holders to finance its assets.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

NPVs

NPVs, or Net Present Values, is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.