White Wave Is a Small Company That Manufactures Several Flavors

question 3

Multiple Choice

White Wave is a small company that manufactures several flavors of soy milk coffee creamers for people who are lactose-intolerant.White Wave typically places large orders for soy to manufacture its creamer.This order size is an example of _____ and would give White Wave an advantage over other buyers of soy.

• A) purchase volume
• B) joint demand
• C) fluctuating demand
• D) sales volume
• E) multiplier effect

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Definitions:

Earn

To earn is to receive money or its equivalent in return for labor, services, or investments made.

Present Value

A calculation that determines the current worth of a future sum of money or stream of cash flows, given a specific rate of return.

Annuity

A fiscal product offering a consistent payout pattern, mainly aimed at supplying funds for individuals in retirement.

Discount Rate

In DCF analysis, the interest rate employed to find out the present value of cash flows expected in the future.