Exhibit 33-8 ​

question 35

Multiple Choice

Exhibit 33-8
​

-Refer to Exhibit 33-8. Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports) . Americans purchase __________ million tons of sugar from U.S. producers and import __________ million tons of sugar from abroad.

• A)15; 10
• B)15; 20
• C)10; 5
• D)10; 15
• E)10; 20

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Definitions:

Capital Budgeting

The procedure a company follows to assess possible significant projects or investments.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by discounting all expected future cash flows to their present value using a specific discount rate.

Firm's Risk Character

The inherent risk profile of a company, based on its operations, industry sector, financial position, and other factors, affecting its return and stock valuation.

Financial Results

A summary of a company's performance over a specific period, including income, expenses, profit, and loss.