Refer to the scenario above. The present value of the positive cash flows from the investment in Plan 2 is equal to:
A) 9,209.
B) 6,263.
C) 15,670.
D) 7,537.
Question 2
Which of the following statements is true of equilibrium?
A) Economic agents have an incentive to divert from equilibrium.
B) Each economic agent can reach equilibrium irrespective of the actions of others.
C) In equilibrium, the opportunity cost of the choices made by each economic agent is zero.
D) In equilibrium, all economic agents are choosing the best feasible option simultaneously.
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How to calculate present value (Question 4)