What Did "Agribusinesses" Need to Be Successful

question 13

Multiple Choice

What did "agribusinesses" need to be successful?

• A) Minimal investments of capital
• B) Minimal investments in labor
• C) Heavy investments in equipment
• D) 160-acre farms
• E) Small government subsidies

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Definitions:

Present Value

Present Value refers to the value today of an amount of money that is to be received in the future, adjusted for a certain rate of return.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Dollar Amount

The value of something represented in terms of the currency of the United States, expressed as a quantity of dollars.

Discount Rates

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.