Suppose the nominal interest rate is 10 percent, the tax rate on interest income is 28 percent, and the inflation rate is 6 percent. Then the after-tax real interest rate is -3.2 percent

Which one of the following statements is true?

a. A low discount rate is always better for environmental protection b. A high discount rate is always better for environmental protection c. A discount rate of zero is always best for environmental protection d. Discounting will decrease the magnitude of future costs and benefits e. High discount rates should be used to evaluate long-term impacts

George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000 . If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year

a. 10,000 customers b. 20,000 customers c. 30,000 customers d. 40,000 customers e. 50,000 customers