Present Value May Be Defined As

question 15

Multiple Choice

Present value may be defined as:

• A) future cash flows discounted to the present.
• B) official prescribed price.
• C) present cash flows compounded into the future.
• D) the average of the bid and asked price.

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Definitions:

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Consumer Sovereignty

The principle that the consumer's preferences determine the production of goods and services within an economy.

Market System

An economic system where decisions regarding investment, production, and distribution are guided by the forces of supply and demand and prices mediate transactions.

Production Decisions

The process of determining what goods or services to produce, how much, and by what method.