Which of the Following Companies Would Be Most Likely to Use

question 109

Multiple Choice

Which of the following companies would be most likely to use target return-on-investment pricing?

• A)a farmer
• B)a supermarket chain
• C)a book publisher
• D)a veterinarian
• E)an automobile manufacturer

---

Definitions:

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money, typically expressed as an annual percentage.

Expected Cash Flows

The projected amount of cash that is anticipated to be generated or expended over a certain period in the future.

Present Value

The contemporary valuation of future monetary sums or cash flow chains, determined by a designated rate of return.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.