Which of the Following Modes of Transportation Is the Costliest

question 52

Multiple Choice

Which of the following modes of transportation is the costliest?

• A) Railroads
• B) Air freight
• C) Water freight
• D) Pipelines

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Discounting

The procedure used to calculate the present value of future income, which is inversely related to both the interest rate and the amount of time that passes before the funds are received.

Present Value

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

Discounting

The process of determining the present value of future cash flows by applying a particular interest rate; often used in investment and finance.