If the Utility Function (U)between Food (F)and Clothing (C)can Be

question 96

Multiple Choice

If the utility function (U) between food (F) and clothing (C) can be represented as U = , the marginal utility of food equals

• A) .
• B) .
• C)1/2 .
• D)1/2 .

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Definitions:

Cash Inflows

Cash inflows refer to the money received by a business from its operating, investing, and financing activities.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Internal Rate

The rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Payback Period

The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates.