Use the Following Scenario to Answer the Question

question 28

Multiple Choice

Use the following scenario to answer the question. A large lending institution is evaluating the long-term pros and cons of building a hydroelectric dam in the Amazon rainforest. First, the lending institution is identifying the appropriate factors and then quantifying them. The factors include, but are not limited to, the direct expenses of building the dam, the lost opportunities from placing a dam on the river, and the profit from the dam. Also included is an analysis of who will be affected by the dam.
-What is the name of the process the lending institution is going through?

• A) a long-term analysis
• B) a supply-demand analysis
• C) a tangible-intangible cost analysis
• D) a benefit-need ratio analysis
• E) a cost-benefit analysis

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Definitions:

Corporations

Legal entities that are separate from their owners, capable of owning property, entering contracts, and being taxed.

Subject

A broad term typically referring to the main topic or person being discussed or studied.

Schedule M-1

A form used by corporations in the U.S. to reconcile income reported for tax purposes with income reported for financial reporting purposes.

Taxable Income

The amount of an individual's or corporation's income used to determine how much tax is owed to the government in a given tax year.