Free CIMAPRA17-BA1-1 Exam Braindumps
BA1 - Fundamentals of Business Economics Questions 1–5 (page: 2)

A business is contemplating investing in a new project with a lifespan of three years and a capital cost of $100,000. The expected net cash flows from the project are as follows:
Year 1 $35,000
Year 2 $50,000
Year 3 $40,000

The cost of capital to the business is 10%

The net present value of the project is: $

A business was selling 20,000 units of its product per month at a price of $10.
When it lowers its price to $9 it finds that its sales rise to 24,000 units per month.

The price elasticity of demand for this firm's product is

A bond has a coupon rate of 7%, a nominal value of $100 and a market price of $140

The percentage running yield is %

A business has fixed costs of $200. Its total variable costs at different levels of output are as follows:

The business can always sell its output at a price of $100 per unit

The profit maximizing level of output is

A country's gross national product (GNP) will be higher than gross domestic product (GDP) if: