An Example of Something That Might Be Sold in the Underground

question 29

Multiple Choice

An example of something that might be sold in the underground economy is:

• A) lawn-mowing services.
• B) endangered animals.
• C) baby-sitting services.
• D) All of these could be exchanged in the underground economy.

---

Definitions:

Financially Attractive

A term used to describe investments or projects that are expected to yield a good financial return.

Discount Rate

The interest rate charged by central banks for lending money to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Project Profitability Index

A financial metric that calculates the ratio between the present value of future cash flows and the initial investment of the project.

Profitability Index

A financial metric that measures the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.