Question

37.Use the following setup for the next question.

A manufacturing firm is deciding whether or not to invest in a new printer that needs an initial investment of $150,000. The investment would increase cash flows in the first year by $80,000 and in the second year by $75,000.

?If the interest rate is 10% then the net present value of the investment is

?a. $5,000

b. ?- $9,091

?c. -$15,290

d.

?-$21,901

33.

Table 13-16
Listed in the table are the long-run total costs for three different firms.

Quantity	1	2	3	4	5
Firm A	100	100	100	100	100
Firm B	100	200	300	400	500
Firm C	100	300	600	1,000	1,500

Refer to Table 13-16. Which firm is experiencing constant returns to scale?

a.	Firm C only

b. Firm A only

c.	Firm B only

d.

Firm A and Firm B only

27.

Table 13-7
The Flying Elvis Copter Rides

Quantity	Total Cost	Fixed Cost	Variable Cost	Marginal Cost	Average Fixed Cost	Average Variable Cost	Average Total Cost
0	$50	$50	$0	--	--	--	--
1	$150	A	B	C	D	E	F
2	G	H	I	$120	J	K	L
3	M	N	O	P	Q	$120	R

Refer to Table 13-7. What is the value of E?

$50

$25

$100

$150