Net Present Value Will Be Greater

question 62

Multiple Choice

Net present value will be greater

• A) as a fixed set of cash receipts occurs later rather than earlier
• B) as the total of the cash receipts, made in same time periods, is smaller
• C) for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each
• D) for a 4% discount rate than for a 6% discount rate
• E) All of the above are true.

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Definitions:

Production Technology

The combination of techniques, machinery, and processes used in the production of goods and services.

Supply Curve Shifts

Movements of the supply curve due to changes in factors other than the price of the good, indicating changes in supplier behavior.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Alter

To change, modify, or adjust.