If a Firm Can Earn a Profit Stream of $50,000

question 133

Multiple Choice

If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth:

• A) more than $500,000 today.
• B) $500,000 today.
• C) less than $500,000 today, but a positive amount.
• D) nothing today
• E) some amount, but whether it is more, less or the same as $500,000 cannot be determined.

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Definitions:

Categorical Proposition

An assertion that confirms or rejects a characteristic for every individual in a class.

Forms A, E, I, O

The four basic types of categorical propositions in traditional logic, distinguished by their quality (affirmative or negative) and quantity (universal or particular).

Subject

The part of a sentence or clause referring to the person or thing that is doing or being something; in logic, it can refer to the entity being discussed or described.

Predicate

The part of a sentence or clause containing a verb and stating something about the subject (e.g., went home in "John went home").