The Present Value of a Stream of Future Revenues Varies

question 93

Multiple Choice

The present value of a stream of future revenues varies ________ with the future revenues and ________ with the interest rate.

• A) inversely; inversely
• B) directly; directly
• C) inversely; directly
• D) directly; inversely

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Definitions:

Cost Of Producing

The total expenditure incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Price Of Margarine

The cost at which margarine is sold, which may vary depending on the brand, ingredients, and market dynamics.