A Negative Externality Is an Example Of

question 43

Multiple Choice

A negative externality is an example of:

• A) Market based initiatives
• B) Foreign direct investment
• C) Autarky
• D) A market failure
• E) Portfolio capital

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Definitions:

Terminal Value

The estimated value of a business or an investment at the end of a specific period, taking into account expected future cash flows.

Cash Flows

Cash flows denote the overall volume of cash and cash-equivalents moving in and out of a company.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, and should not affect future decision-making.

Project Evaluation

Project evaluation involves assessing the viability, cost-effectiveness, and potential return on investment of a project through various analytical techniques.