Refer to Scenario 15.4. The present value of the electricity bill savings you will receive over the next 10 years is
A) $200 times 10.
B) $200/1.06.
C) $200/1.0610.
D) $200 (1 + 1/1.06 + 1/1.062 + ... + 1/1.069 ).
E) $200 / (1 + 1/1.06 + 1/1.062 + ... + 1/1.069 ).
D
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In the IO perspective, it is important to enter an industry with
a. High barriers to entry b. High buyer power c. High supplier power d. All of the above
The law of comparative advantage explains why a nation will benefit from trade when
a. it exports more than it imports. b. its trading partners are experiencing offsetting losses. c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer. d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.