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In the Expression for Present Value of Benefits (PVB), Σ(Bt/[1+rs]t)

Question 21

Multiple Choice

In the expression for present value of benefits (PVB) , Σ(bt/[1+rs]t) , with bt = Bt/(1 + p) t,


A) bt represents incremental nominal benefits
B) Bt represents incremental real benefits
C) bt represents incremental real benefits
D) p stands for the opportunity cost of money

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