Which of the Following Cash Flows Is Not Considered When

question 120

Multiple Choice

Which of the following cash flows is not considered when using the net present value method?

• A) Future year-end cash flows.
• B) Future cash inflows.
• C) Future cash outflows.
• D) Non-uniform cash inflows.
• E) Past cash outflows.

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Definitions:

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different segments of customers based on their willingness to pay.

Second-Degree Discrimination

A pricing strategy where prices are varied depending on quantity sold, such as bulk discounts, or according to product versions.

Peak-Load Pricing

Peak-load pricing is a strategy that involves charging higher prices during periods of high demand and lower prices during periods of low demand to manage usage and balance supply and demand.

Consumer Willingness

The maximum amount a consumer is ready to pay for a good or service, reflecting their valuation of it.