Which of the Following Is NOT a Negative Externality

question 33

Multiple Choice

Which of the following is NOT a negative externality?

• A) A homeowner failing to remove trash from his yard, leaving it as an unsightly eyesore in the neighborhood.
• B) Low-flying aircraft creating noise over an otherwise quiet neighborhood.
• C) A household pet leaving waste on a public sidewalk.
• D) E-mail "spam" consisting of advertisements for goods and services.

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Definitions:

Initial Cash Outlay

The total amount of money required upfront to initiate a project, investment, or venture.

Discount Rate

This is the interest rate used in DCF evaluations to establish the current value of expected future cash inflows.

After-tax Cash Inflows

The amount of money a company receives from its operations after all tax obligations have been paid.

Required Return

The minimum rate of profit expected by investors for assuming the risk of investing in a stock or other types of securities.