A firm has three different investment options, each costing $10 million. Option A will generate $12 million in revenue at the end of one year. Option B will generate $15 million in revenue at the end of two years. Option C will generate $18 million in revenue at the end of three years. Which option should the firm choose?
a. Option A
b. Option B
c. Option C
d. The answer depends on the rate of interest, which is not specified here.
d
Economics
You might also like to view...
In a system in which all banks have a uniform reserve requirement, the money multiplier is equal to 1 divided by the required reserve ratio
a. True b. False Indicate whether the statement is true or false
Economics
The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a "normal" economic situation
a. True b. False Indicate whether the statement is true or false
Economics