Aproposed project requires an initial cash outlay of $75,000 for equipment and an additional cash outlay of $25,000 in year 1 to cover operating costs. during years 2 through 4, the project will generate cash inflows of $50,000 a year. what is the net present value of this project at a discount rate of 12.2 percent?

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.