Which of the Following Would Reduce the Net Present Value

question 33

Multiple Choice

Which of the following would reduce the net present value of your college education?

• A) higher interest rates
• B) earlier retirement age
• C) higher wages for high school graduates
• D) all of the above

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Definitions:

Quantity Discount

A pricing strategy where the price per unit of an item is reduced based on the quantity purchased, incentivizing larger orders.

Carrying Costs

The expenses incurred by holding inventory or assets over a period of time.

Carrying Receivables

The process of maintaining accounts receivable on the balance sheet, which represents money owed to a company by its customers for goods or services delivered.

Incremental Cost

The additional cost that a company incurs when producing one more unit of a product.