Physical Capital Is

question 11

Multiple Choice

Physical capital is:

• A)the factories and machinery used to produce other goods and services.
• B)the talents, training, and education of workers.
• C)the financial resources available for investment.
• D)the physical labor of workers.

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Definitions:

Useful Life

The expected period of time during which an asset remains useful for the purposes for which it was acquired.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment itself.

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Net Cash Inflows

The total cash receipts minus cash payments over a period of time from operational, financial, and investing activities.