The Present Value of a Given Future Stream of Benefits

question 92

Multiple Choice

The present value of a given future stream of benefits will be lower when the benefits are ________ and the interest rate is ________.

• A)nearer in time; lower
• B)accruing in the first time period only; lower
• C)more distant in time; higher
• D)equalized over a ten-year period; zero
• E)more distant in time; lower

---

Definitions:

Bacillus Thuringiensis

A naturally occurring bacterium commonly used as a biological pesticide due to its ability to produce proteins that are toxic to many insect larvae.

Bt-Corn

Genetically modified corn that has been engineered to produce a bacterium toxin (Bacillus thuringiensis) to kill insect pests.

Physical State

The classification of matter as a solid, liquid, gas, or plasma based on intermolecular forces and energy.

Unsaturated

Referring to a compound, especially fats or oils, with at least one double bond between carbon atoms, allowing the addition of more hydrogen atoms.