Question 37

What is the Net Present Value (NPV) of an infinite stream of annual payments of 50 to a firm with a cost of capital of 8%?

A 625

B 54

C Zero

D Cannot be calculated

E 4

When describing fixed and variable costs, which of the following statements is true?

A Both costs are constant when considered on a per-unit basis

B Both costs are constant when considered as a total

C Variable costs are constant in total and fixed costs are constant per unit

D Fixed costs are constant in total and variable costs are constant per unit