An oil company is considering drilling in the Gulf at a current cost of $300,000 with an expected profit of $500,000 in three years. The current market rate is 10 percent. Should the company make the investment?
A. Yes, the future value of the profit is greater than the present value of the cost
B. No, the future value of the profit is less than the present value of the cost
C. Yes, the present value of the profit is greater than the present value of the cost
D. No, the present value of the profit is less than the present value of the cost
C. Yes, the present value of the profit is greater than the present value of the cost
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The equation of exchange states that:
a. money supply multiplied by real output equals velocity. b. velocity multiplied by money supply equals the selling price times the quantity of actual output. c. money supply divided by velocity equals nominal GDP. d. money supply divided by velocity equals real GDP.
The top 1% of income earners in the U.S. (those with the highest taxable incomes) pay
A) about the same percentage of their incomes in taxes as the average U.S. taxpayer. B) a much lower percentage of their incomes in taxes than the average U.S. taxpayer. C) a much higher percentage of their incomes in taxes than the average U.S. taxpayer. D) about 15 percent of their incomes in income taxes E) a and d