Answer:
-$5,114.07
Explanation:
The computation of the net present value is shown below:
= Present value of all year cash flows - initial investment
where,
Present value of all year cash flows = Annual cash flows × PVIFA factor at 9 years for 8% + Salvage value × discount factor at 8%
= $38,000 × 6.2469 + $15,000 × 0.500248967
= $237,382.20 + $7,503.73
= $244,885.93
Refer to the PVIFA table and discount factor table
And, the initial investment is $250,000
So, the net present value is
= $244,885.93 - $250,000
= -$5,114.07
Are there multiple choices for us to choose from?
Answer:
True
Explanation:
Gross Domestic Product (GDP) can be described as the monetary value of commodities produced within a country over a specified period of time.
For an economy as a whole, income must equal expenditure because there must a buyer and a seller for every transactions.
GDP is therefore a measures total expenditures on goods and services produced within a country, and the total income everyone got from the production of these goods and services.