Present value of an annuity of 1: periods 8% 9% 10%1 0.926 0.917 0.9092 1.783 1.759 1.7363 2.577 2.531 2.487a company has a minimum required rate of return of 10%. it is considering investing in a project that costs $50,000 and is expected to generate cash inflows of $25,000 at the end of each year for three years. the profitability index for this project is: a. 1.00b. 0.80c. 1.24d. 1.27the net present value method can only be used in capital budgeting if the expected cash flows from a project are an equal amount each year. i. trueii. falseone way of incorporating intangible benefits into the capital budgeting decision is to project conservative estimates of the value of the intangible benefits and include them in the npv calculation. i.trueii. false

5. real versus nominal gdp consider a simple economy that produces two goods: cupcakes and muffins. the following table shows the prices and quantities of the goods over a three-year period. year cupcakes muffins price quantity price quantity (dollars per cupcake) (number of cupcakes) (dollars per muffin) (number of muffins) 2014 2 115 5 175 2015 4 150 2 180 2016 1 100 2 160 use the information from the preceding table to fill in the following table. year nominal gdp real gdp gdp deflator (dollars) (base year 2014, dollars) 2014 2015 2016 from 2015 to 2016, nominal gdp , and real gdp . the inflation rate in 2016 was . why is real gdp a more accurate measure of an economy's production than nominal gdp? real gdp does not include the value of intermediate goods and services, but nominal gdp does. real gdp measures the value of the goods and services an economy produces, but nominal gdp measures the value of the goods and services an economy consumes. real gdp is not influenced by price changes, but nominal gdp is.