Which of the Following Is Not a Potential Business Impact

question 59

Multiple Choice

Which of the following is not a potential business impact resulting from alternative energy sources?

• A) The cost of alternative energy sources is increasing with technical advances
• B) The deregulation of the energy industry is expected to create a huge spurt of innovative entrepreneurship
• C) Oil will remain the world's most important energy resource
• D) None of these

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Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The current value of a sum of money or cash flows expected in the future, discounted at a given return rate.

Initial Cost

The upfront expenditure associated with the acquisition of an asset or the launch of a project.

Net Present Value

A valuation method used to estimate the attractiveness of an investment, by calculating the present value of expected future cash flows minus the initial investment cost.