N$2105$E Principle...

Module E Test

MATH $1113$E$,$ section...

onomics Summer $2025$

$"$ mas yuis. cu purit$($s$)$

$4$ of $20$

possible

This question: $1$

point$($s$)$ possible

What is net present value and how is it used in financial decisions?

Net present value is the $$

A$.$ present value of the marginal benefit from a financial decision minus its marginal cost

B$.$ present value of all the future flows of money that arise from a financial decision minus the initial cost of the decision

C$.$ future value of a decision divided by $(1r)$

D$.$ present value of all the future flows of money that arise from a financial decision divided by the number of years until a profit is expected from the decision

State the financial decision rule:

If the net present value is positive $$ and it the net present value is negative $$

A$.$ do not take the action until the interest rate rises; do not take the action until the interest rate falls

B$.$ hire more workers; hire fewer workers

C$.$ take the action:

do not take the action

D$.$ invest more money; invest less money

Time Remaining: $01$:$55$:$31$

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