When Selecting a City,an Entrepreneur Will Need to Factor into Her

question 58

Multiple Choice

When selecting a city,an entrepreneur will need to factor into her decision:

• A)the population density and growth trends.
• B)the nature of competition.
• C)the cost of the location.
• D)All of the above

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often reflecting the cost of capital or the risk of the investment.

Present Value

The present evaluation of a future cash sum or series of cash receipts, factoring in a certain rate of return for discounting.

Interest Rate

The sum a lender charges a borrower to use assets, conveyed as a percentage of the principal's amount.

Present Value

The here and now valuation of a prospective future financial amount or series of cash flows, calculated with a certain return rate.