In Cash Flow Estimation, the Existence of Externalities Should Be

question 71

True/False

In cash flow estimation, the existence of externalities should be taken into account if those externalities have any effects on the firm's long-run cash flows.

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Definitions:

Export

A good or service produced in one country and sold to buyers in another country, contributing to the selling country's gross domestic product.

Cheese

A dairy product derived from milk and produced in a wide range of flavors, textures, and forms by coagulating the milk protein casein.

Opportunity Cost

The sacrifice of prospective advantages from other possibilities when one option is selected.

International Trade

The exchange of goods and services between countries, which can involve exports, imports, and the trading of resources.