A Longstanding Charge Against Intermediaries Is That They Mark Up

question 139

Multiple Choice

A longstanding charge against intermediaries is that they mark up prices beyond the ________.

• A) value of their services
• B) delivery charges
• C) going market price
• D) promotion cost
• E) resale value

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Definitions:

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of a potential investment, calculating the discount rate at which the net present value of costs and benefits equals zero.

Cost of Capital

The necessary rate of earnings a firm must obtain from its investments to preserve its market worth and secure capital.

Initial Investment

The amount of money invested at the start of a project or business venture to get it off the ground.

Positive Future Cash Flows

The expectation or projection of an increase in the amount of money flowing into a company over a period of time, typically resulting from operations, investments, or financing activities.