Other Things Equal, in the Absence of Environmental Protection Agency

question 116

Multiple Choice

Other things equal, in the absence of Environmental Protection Agency pollution credits, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach _____ or more per barrel.

• A)$50
• B)$110
• C)$80
• D)$127

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Definitions:

Upper Cash Limit

The maximum cash balance a company sets to hold on hand, beyond which excess funds are usually invested in short-term securities.

Lockbox Services

Banking services that process payments for companies by collecting and depositing checks into their accounts.

NPV

Net Present Value is a financial measure that computes the variance between the present value of cash inflows and outflows within a specific timeframe.

T-bills Yield

The return on investment for U.S. Treasury bills, being a measure of the interest income earned from holding these government securities.