Quik Development Corporation Wants to Convert Farmland on the Out-Skirts

question 5

Multiple Choice

Quik Development Corporation wants to convert farmland on the out-skirts of River City into residential and commercial property.The state restricts the conversion of farmland by subjecting development plans to the approval of State Development Agency.This is an exercise of the state's

• A)police power.
• B)power of eminent domain.
• C)restrictive covenant.
• D)zoning power.

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Definitions:

Cash Flows

The entire scope of capital flow inbound and outbound of an enterprise, distinctly affecting its cash availability.

Discount Rate

The discount rate in discounted cash flow analysis that’s used for the purpose of evaluating the present worth of future cash flows.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to assess investment opportunities.

Per Year

A term used to specify the occurrence or calculation of something on an annual basis.