The Development of New Technology Typically

question 399

Multiple Choice

The development of new technology typically:

• A) shifts the supply curve to the right.
• B) reduces profits.
• C) results in a downward movement along a supply curve.
• D) increases costs of production.
• E) shifts the demand curve to the right.

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Definitions:

Present Value

The valuation in today's terms of a prospective future sum of money or cash inflows, utilizing a particular return rate.

Initial Cost

The initial expenditure required to acquire an asset or to start a project, incorporating all necessary expenses to bring it to a usable state.

Net Present Value

This signifies the net difference in present value terms of cash received versus cash paid out over an outlined time interval.

Internal Rate of Return

The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.