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all one problem just multiple steps D Consider a situation in which a firm is contemplating whether to undertake Project A and/or Project B. which
all one problem just multiple steps
D Consider a situation in which a firm is contemplating whether to undertake Project A and/or Project B. which have expected future streams of income (benefits) as given in this table: Project A 3473 1 year from now 2 year from now Project B $242 $242 $0 Neither of the projects generates any additional benefits after two years. Assume that the interest rate is and will remain 10% and that compounding happens annually. Recall that the formula for the present value (PV) of a future payment (F) t years from now with an interest rate of ris: F PV = (1+) - atrij Use this information to answer the following three questions, What is the total present value of all of the future benefits of Project B? $484 $200 $220 It cannot be determined from the information given. It can be determined from the information given, but the correct answer does not appear above. Which project has the higher total present value? Project A Project B They have the same total present value. It cannot be determined from the information given. If Project A and Project Beach cost exactly $435 now (i.e., in the present) and the firm has no money on hand, how much money will the firm decide to take out now in loans to finance one or more of the projects-if any? $1290 $645 $0 It cannot be determined from the information given. It can be determined from the information given, but the correct answer does not appear above. Which of the following would shift the U.S. aggregate demand curve to the left? Select all correct answers. A drought reduces agricultural production The economy of China slows and buys even fewer U.S.-made goods. An improvement in technology allows production to be more efficient. There is a rise in unemployment, decreasing the aggregate income of households. The value of the dollar decreases relative to foreign currencies. Question 18 3 pts In the AD-AS model, when the overall price level rises the long-run aggregate supply curve shifts leftward slopes upward does not shift shifts rightward rotates clockwise
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