When Solving Time Value of Money Problems Using Excel,the Type

question 48

True/False

When solving time value of money problems using Excel,the type = 0 variable means payments are made at the end of each period,and the type = 1 variable means payments are made at the beginning of each period.

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Definitions:

Implicit Costs

Implicit costs are the opportunity costs of using resources owned by the business for production instead of lending, selling, or renting them out.

Accounting Profits

The net income for a company determined by subtracting total expenses from total revenues, according to generally accepted accounting principles (GAAP).

Short Run

A period of time during which at least one factor of production is fixed, usually considered in economic models and analyses.

Long Run

A period of time in economics sufficiently long to allow for all inputs to production, such as plant and equipment, to be varied (as opposed to just the amount of labor or raw materials).