A firm is considering three projects. Each costs $1 million now. Project A will yield $400,000 a year for three years, beginning one year from now. Project B will yield $1.25 million three years from now, and Project C will yield $600,000 for two years,
beginning two years from now. If the interest rate is 8 percent, which of these projects should the firm undertake?
A) Project A
B) Project B
C) Project C
D) none of these
Answer: A
Economics
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A long and deep recession in the business cycle is:
a. unemployment. b. a trough. c. a recession. d. a depression e. unavoidable.
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According to the data on real U.S. GDP,
a. economic growth has been irregular, with periodic downturns. b. economic growth has been consistent, with few downturns. c. economic growth has been extremely rapid, but with major collapses. d. economic growth has been elusive, but downturns have been eliminated.
Economics