Answered: In net present worth analysis over a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In net present worth analysis over a period, if the net present worth value is equal to zero, the initial investment ______

a. has not produced profits

b. has no certainty of gians

c. has been fully account by the operation

d. has a tendency to produce more losses

e. has been applied with correct interest

A company invests on selling computer units worth Php 32,000.00. The probability of maintaining this price throughout the year is 65% while that of less or more than 10% the expected are 15% and 20%, (a) what is the probability that the selling price for that year is more than the expected price?

a. 0.8

b. 0.85

c. 0.25

d. 0.2

e. 1

f. 0.15

g. 0.65

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