Answer: A positive NPV is gotten after 8 years
Explanation:
The net present value is also referred to as the net present worth. The net present value applies to a series of cash flows that occurs at different times.
The present value of cash flow depends on time interval between now and the cash flow and also depends on discount rate. The net present value accounts for time value of money.
The explanation for the question has been attached.
A positive NPV is gotten after 8 years.
Answer:
three Economic Impact Payments
Explanation:
Recovery rebate credits (Economic Impact Payments) for 2020 and 2021. To provide financial relief during a pandemic, many Americans received three Economic Impact Payments (EIP) in 2020 and 2021. The third payment, which began rolling out in March 2021, served as an advance payment of the 2021 Recovery Rebate Credit.
Present Value involves discounting, and future value involves compounding.
The find present value of a dollar a year from now, we must discount by the discount rate, since a dollar a year from now is not worth as much as a dollar today.
To find the future value (in a year) of a dollar we receive today, we increase the dollar by the discount rate, since our dollar today is worth more than a dollar a year from now.
Answer:
Increase in government purchases will have a larger impact om real gross domestic.products.
Explanation:
Consumers' behaviors are unpredictable and they also have a choice between spending the increase in their disposable income due to the decrease in personal taxes and saving.
Consumers can choose to save this increase rather than spending it. And when it is saved it has little impact real gross domestic product.
Whereas if it is government, increase government purchases has direct impact on real gross domestic product. Its multiplier's effect is larger than that of the consumers'