A Company Wants to Find the Yield on an Investment

question 99

Multiple Choice

A company wants to find the yield on an investment that requires a certain amount today in which then returns a single amount some time in the future. Which time value of money table would the company use?

• A) the present value of $1 or the future value of $1.
• B) the future value of an annuity of $1.
• C) present value of an annuity of $1.
• D) None of these are correct.

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Definitions:

Long-run Market Supply

Describes the total quantity of a good or service that producers are willing and able to supply at various prices in the long term, considering all factors of production are variable.

Resource Prices

The costs associated with acquiring the inputs needed for production, including raw materials, labor, and capital.

Industry Expands

The process of growth within a particular sector due to factors like increased demand, technological advancements, or entry of new businesses.

Competitive Price-taker Market

A market structure where sellers accept the market price as given, having no control over it due to perfect competition.