Question 7 The velocity of money is the:
A. rate at which the price index for consumer goods rises.
B. output expansion multiple of government expenditures.
C. average number of times a dollar is used to purchase goods and services.
D. number of times a dollar is taken out of the country during a year.
Question 5 Edelman Enginenering is considering including an overhead pulley system in this year’s capital budget. The cash outlay for the pully system is $22,430. The firm’s cost of capital is 14%. After-tax cash flows, including depreciation are $7,500 for each of the next 5 years. Calculate the internal rate of return (IRR) and the net present value (NPV) for the project, and indicate the correct accept/reject decision.. NPV IRR Accept/Reject0 L2 b. X e6 c! A9 q1 s
A. $15,070 14% Accept
B. $15,070 14% Reject
C. $3,318 20% Accept
D. $3,318 20% Reject