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 has the highest NPV?

To which of the problems in the construction of the CPI is the invention of pocket-sized computers most relevant?

a. substitution bias b. introduction of new goods c. unmeasured quality change d. income bias

To be useful, a model must

A) predict accurately all of the time. B) predict more accurately than other models that have been developed. C) have assumptions that have been verified by empirical testing. D) predict the behavior of every individual.