A Change in the ________ Environment Can Affect Consumer Purchases

question 96

Multiple Choice

A change in the ________ environment can affect consumer purchases of homes,cars,and other items usually bought on credit.

• A)legal
• B)political
• C)social or cultural
• D)technological
• E)economic

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Definitions:

Cash Flows

The sum of money flowing in and out of a company, particularly influencing its ability to cover short-term obligations.

Cost of Capital

The yield a business needs to generate from its project ventures to preserve its market valuation and draw in capital.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows.

IRR

Internal Rate of Return, a metric used in capital budgeting to estimate the profitability of potential investments.