Which of the Following Would Be a Private Cost to a Cigarette

question 181

Multiple Choice

Which of the following would be a private cost to a cigarette smoker?

• A) Cost to the employer of the higher health insurance premiums due to the hiring of a smoker.
• B) Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking.
• C) Cost to the city of extra park cleanup due to the presence of cigarette butts.
• D) Price of the pack of cigarettes.
• E) Cost to the government to pay the hospital expenses of indigent smokers.

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Definitions:

Internal Rate

A variation of the Internal Rate of Return (IRR), focusing on the rate at which a series of cash flows would result in a net present value of zero.

Payback Period

The length of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Payback Period

The length of time it takes for an investment to recover its initial outlay in terms of profits or savings, used as a measure of investment risk.

Cash Operating Expenses

Costs directly associated with the operation of a business that require cash payment, excluding non-cash expenses such as depreciation.