Which of the Following Is True

question 9

Multiple Choice

Which of the following is true?

• A) Buyers always prefer lower prices to higher prices.
• B) Buyers never prefer lower prices to higher prices.
• C) Buyers rarely prefer lower prices to higher prices.
• D) Buyers prefer lower prices to higher prices,ceteris paribus.

---

Definitions:

Net Cash Inflows

The difference between all cash inflows and outflows within a specific period, reflecting the company’s cash position.

Working Capital

The measure of a company's short-term liquidity, calculated as current assets minus current liabilities.

Salvage Value

The approximated financial value of an asset at the termination of its usability.

Required Rate of Return

The minimum percentage rate of return on an investment that a person or company deems acceptable, considering the risks involved.