Pyramids of Numbers Are of Limited Usefulness Because They

question 67

Multiple Choice

Pyramids of numbers are of limited usefulness because they:

• A) do not indicate the biomass of the organisms at a given time.
• B) do not indicate the gross primary productivity of each species.
• C) do not include energy flow through the ecosystem.
• D) include three trophic levels.
• E) None of the answer choices is correct.

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Definitions:

Discount Rate

The rate applied within discounted cash flow analysis for assessing the present worth of forthcoming cash flows.

Net Present Value

A method of evaluating investments by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Initial Investment

The initial amount of money spent to start a project, investment, or business, often including costs such as purchasing equipment, property, or technology.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows from an investment or project equals zero, used as a gauge for its profitability.