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Read the following scenario and answer the question below.
In Johannesburg, South Africa, the South West Township (Soweto) was one of several areas established early in the last century for blacks to live away from the white ruling minority. On the hills surrounding Soweto, the company that provides South Africaʹs electricity, Eskom, built a large, coal-burning, electricity-generating plant. The electricity was for white areas of Johannesburg, miles away from the plant. The residents of Soweto had no electrical connections.
-Things have improved in Soweto in the past 10 years. However, even in areas where electricity is available, as of 2002 it typically costs up to ten times more per kilowatt-hour for electricity in Soweto than for electricity to nearby industries, and over 30% more than in the nearby white suburban areas. A possible reason for this is that ________________.
Forecast Horizon
The maximum period for which a prediction or forecast is considered valid or reliable, beyond which the uncertainty becomes too large.
Depreciation Expense
The portion of the total cost of a tangible asset that is charged as an expense in a particular accounting period due to its usage and wear and tear.
Financial Structure
The mix of a company's liabilities and shareholders' equity used to finance its assets, including short-term and long-term debt, as well as equity capital.
Operating Cash Flows
Cash generated from a company's normal business operations, reflecting how well it can generate cash to pay debts and fund its operating expenses.