In the long run, imports are paid for by

Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)

A) accounting identity. B) special draw. C) surplus item. D) deficit item.

A publisher is deciding whether or not to invest in a new printer. The printer would cost $500, and it would increase cash flows by $600 for the next two years. If the cost of capital is 10% then the net present value of the investment is

a. $1041.32 b. $541.32 c. $1090.91 d. $590.91