Preserving the Environment Should Be a Permanent Part of Doing

question 48

Multiple Choice

Preserving the environment should be a permanent part of doing business for which of the following reasons?

• A) Consumer demand for environmentally safe products and packages is low.
• B) Public opinion demanding that firms conduct business in ways that preserve the natural environment is weak.
• C) Federal and state environmental regulations are fairly simple and static.
• D) Many consumers, suppliers, distributors, and investors shun doing business with environmentally strong firms.
• E) More lenders are examining the environmental liabilities of businesses seeking loans.

---

Definitions:

Net Present Value

A calculation that compares the value of all future cash flows of a project, discounted back to the present, to the initial investment.

Discount Rate

In finance, it's the interest rate the Federal Reserve charges banks for borrowing funds, used to control money supply.

Net Present Value

A method used in finance to assess the profitability of an investment by calculating the present value of its expected future cash flows minus the initial investment cost.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.