When Determining a Minimum Bid Price,you Should Assume the

question 39

Multiple Choice

When determining a minimum bid price,you should assume the

• A)net present value is zero.
• B)net profit is zero.
• C)discount rate equals the risk-free rate.
• D)depreciation is based on the straight-line method.
• E)fixed assets are unaffected.

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Definitions:

Hornfels

A fine-grained metamorphic rock formed by the contact metamorphism of shale and other clay-rich rocks.

Foliation

The repetitive layering in metamorphic rocks, which occurs due to the reorientation of minerals under intense heat and pressure.

Thrust Fault

a type of reverse fault where the upper block, above the fault plane, moves up and over the lower block.

Metamorphic Rock

rock that has undergone transformation from an original form due to high pressure, high temperature, or both.