As the Present Value of the Future Earnings from Owning

question 35

Multiple Choice

As the present value of the future earnings from owning an asset ____, the market value of the asset ____.

• A) decreases; increases
• B) increases; decreases
• C) increases; increases
• D) increases; is uncertain

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Definitions:

Angiosperms

A large group of plants characterized by having flowers and producing seeds enclosed within a fruit.

Xylem

Complex vascular tissue of plants; cell walls of its dead tracheids and vessel elements form tubes that distribute water and mineral ions through the plant body.

Tracheids

Component of xylem. Tapered cells that die when mature; pitted walls that remain interconnect with other tracheids to form water-conducting tubes.

Vessel Elements

Of xylem, cells that form in stacks and die when mature; their pitted walls remain to form water-conducting tubes. Each tube consists of a stack of vessel elements that meet end to end at perforation plates.