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Author Question: An investment should be undertaken (Read 38 times)

Mimi

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on: Apr 19, 2019

Question 1

Refer to the information provided in Figure 11.1 below to answer the question(s) that follow. 
NOTE: The MEI (marginal efficiency of investment) curve represents the demand for investment.








Refer to Figure 11.1. If the market rate of interest is < 5%, this firm's investment will total


◦ $0.
◦ < $5,000.
◦ $7,000.
◦ > $15,000.

Question 2

An investment should be undertaken


◦ if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.
◦ if the present value of the expected income stream associated with the investment is less than the full cost of the investment project.
◦ any time the present value of the expected income stream associated with the investment is positive.
◦ if the present value of the costs of the investment project exceed the present value of the expected returns from the investment project.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Mimi on Apr 19, 2019

princessflame2016

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Mimi

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Reply #2 on: Apr 19, 2019
Thank you!


princessflame2016

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Reply #3 on: Apr 19, 2019
Always glad to help...


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