Once the Demand Curve for a Product or Service Is

question 112

Multiple Choice

Once the demand curve for a product or service is drawn,it

• A)remains stable over time.
• B)can shift either rightward or leftward.
• C)is possible to move along the curve,but the curve will not shift.
• D)tends to become steeper over time.

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Definitions:

Net Present Value

A financial measure that calculates the present value of net cash flows (inflows minus outflows) from an investment, discounting future cash flows to the present.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate that makes the net present value of cash flows equal to zero.

Capital Expenditure Decision Process

The process of making decisions related to the acquisition of capital assets, taking into consideration their costs, benefits, and risks.

Profitability Index

A financial metric that compares the present value of future cash flows from an investment to its initial cost, used to evaluate investment attractiveness.