The Additional Benefit of Increasing Some Activity Is Called the

question 620

Multiple Choice

The additional benefit of increasing some activity is called the

• A) marginal benefit.
• B) marginal opportunity benefit.
• C) marginal opportunity cost.
• D) scarcity benefit.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used for analyzing the profitability of investments or projects.

Discount Rate

The interest rate used in discounted cash flow (DCF) analyses to determine the present value of future cash flows.

Simple Rate

An interest calculation method where the interest charge is calculated only on the principal amount, without compounding.

Net Operating Income

A company's income after operating expenses have been subtracted but before income taxes and interest are deducted.