Question: Calculate the net present value for a 10-year project with an initial investment of 10,000 and a cash inflow of 4,000 per year. Assume that

Calculate the net present value for a 10-year project with an initial investment of 10,000 and a cash inflow of 4,000 per year. Assume that the firm has an opportunity cost of 13%. Comment on the acceptability of the project.

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LO12.3 Explain how demand is seen by a pure monopoly.

1. Explain how the long run differs from the short run in pure competition. LO11.1

2. Relate opportunity costs to why profits encourage entry into purely competitive industries and how losses encourage exit from purely competitive industries. LO11.2