The Cash Flow Approach Involves a Calculation with a Number

question 41

Multiple Choice

The cash flow approach involves a calculation with a number of steps, starting with the pre- interest profits. Which of the following steps would you take first?

• A) Take away capital expenditure on fixed assets
• B) Take away interest payments
• C) Discount back to the present
• D) Add depreciation

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Definitions:

Price Elastic

Price elasticity refers to the degree to which the quantity demanded of a good or service changes in response to a change in its price.

Availability of Substitutes

The presence of alternative products or services that can satisfy the same needs or wants as the original product.

Own Price Elasticity

Measures the responsiveness of the quantity demanded of a good to a change in its own price.

Anne's Apple Pies

A fictional or specific business entity known for producing or selling apple pies.