To Determine the Present Value of Any Future Amount, You

question 55

Multiple Choice

To determine the present value of any future amount, you need to know all of the following except?

• A)the interest rate.
• B)the future amount to be received.
• C)the preference decision.
• D)when the future amount will be received.

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Definitions:

Pigouvian Taxes

Taxes imposed on any market activity that generates negative externalities (costs not reflected in the market price) to correct the market outcome.

External Costs

Costs that are not borne by the producers or users of a product or service, but by society or the environment.

Polluting Firms

Companies that release harmful substances into the environment as a byproduct of their production processes.

Emissions Standards

Emissions standards are government-imposed limits on the amount of pollutants that can be emitted by vehicles and other sources, to protect environmental and public health.