Which Would Be Considered an Investment According to Economists

question 18

Multiple Choice

Which would be considered an investment according to economists?

• A)the buying of shares of Fidelity mutual funds
• B)the purchase of a new machinery by McCain Food
• C)the selling of Boeing stock by a businessman
• D)the selling of GE corporate bonds

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Definitions:

Financially Attractive

A term describing investments, projects, or acquisitions that are appealing due to their potential for financial return or profitability.

Proposed Project

An outlined plan or proposal for a future project, often including objectives, methodologies, and potential impacts.

Net Present Value

The disparity between the current value of cash coming in and the current value of cash going out over a time frame, utilized in capital budgeting to evaluate an investment's profitability.

Annual Benefit

The total benefit, usually measured in monetary terms, that is expected to be received annually.