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:

Size Constancy

A perceptual phenomenon where the perceived size of an object remains constant despite changes in the distance from which it is viewed.

Motion Parallax

A depth cue in visual perception where objects closer to the observer move faster across the visual field than objects further away.

Interposition

A visual cue in which an object partially blocks the view of another, indicating the first object is closer to the viewer.

Texture Gradient

A depth cue in which the density of texture becomes greater as the surface recedes, helping perceive depth in the visual field.