World Wide Delivery Service Corporation Develops a Way to Speed

question 159

Multiple Choice

World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs.We would expect that this would

• A)raise the demand for existing shares of the stock,causing the price to rise.
• B)decrease the demand for existing shares of the stock,causing the price to fall.
• C)raise the supply of the existing shares of stock,causing the price to rise.
• D)raise the supply of the existing shares of stock,causing the price to fall.

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Definitions:

Internal Rate

This term is too broad without specific context, such as “Internal Rate of Return (IRR).” Assuming IRR, it is a financial metric used to estimate the profitability of potential investments.

Present Value

The today's value of a forthcoming sum of money or cash flow sequence, determined by a specific rate of return.

Net Present Value Method

A method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Annual Return

The annual return is the percentage change in an investment's value over a year, accounting for dividends, interest, and capital gains.