A Scientist Observes a Population of Grasshoppers in a Farm

question 49

Multiple Choice

A scientist observes a population of grasshoppers in a farm field several times over the summer. She notices that each time she visits, the population has doubled in size. The scientist's results indicate the grasshopper population is probably

• A) in the lag phase.
• B) in the exponential growth phase.
• C) decelerating.
• D) in the stable equilibrium phase.
• E) at carrying capacity.

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Definitions:

Discount Rate

The interest rate used to calculate the present value of future cash flows.

Discount Rate

The rate of interest utilized within discounted cash flow methodology to calculate the current market value of future cash flows.

Net Present Value

The calculation of the current value of a series of future cash flows generated by an investment minus the initial capital cost.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.