When Does a Shortage Occur

question 2

Essay

When does a shortage occur?

---

Definitions:

Cash Operating Expenses

Expenses directly related to the daily operational activities of a business, such as salaries, rent, and utilities, that require immediate cash payment.

Net Present Value

A financial metric that calculates the present value of all future cash flows of a project, minus the initial investment, to evaluate its profitability.

Cash Outflow

A financial term indicating the outflow of cash from a business or individual for expenses, investments, and other transactions.

Guaranteed Rate

A fixed interest rate assured by a lender or issuer for a specified period.