A Ticket to See the Radio City Rockettes Costs $90

question 70

Multiple Choice

A ticket to see the Radio City Rockettes costs $90. You buy a ticket for $30 to see the New York Jets play football. The money price for

• A) the Rockettes ticket is $90 and the relative price is 3 Jets tickets per Rockette ticket.
• B) the Rockettes ticket is 3 Jets tickets per Rockette ticket and the relative price is $90.
• C) a Jets ticket is $30 and the relative price is 3 Rockettes tickets per Jets ticket.
• D) a Jets ticket is $30 and $3 for a Rockettes ticket.

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Definitions:

Terminal Value

The estimated value of a business or project at the end of a forecast period, used in financial modeling.

NPV

Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of all cash inflows and outflows associated with it.

Discount Rate

The discount rate applied in the discounted cash flow method to calculate the current value of future cash flows.

Tax Rate

The rate at which a person or company is charged taxes by the state.