Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company. Assume an interest rate of 5%. Which project should the company choose if they want to recover their initial investment as soon as possible?

According to Joseph Schumpeter, the theory of creative destruction describes a process by which

A) some new products unleash a gale of destruction that drive other new products out of the market. B) the creation of new products never involves the destruction of old products. C) new products unleash a gale of destruction that drives old products out of the market. D) new products are created by the destruction of capital.

Under competitive conditions, market prices

a. generally convey little information about the value and cost of goods. b. do not usually have much of an effect on the decisions of individuals. c. are incapable of coordinating the actions of buyers and sellers. d. generally bring the self-interest of individuals into harmony with the general welfare.