Which of the Following Is an Example of an Ultimate

question 129

Multiple Choice

Which of the following is an example of an ultimate consumer?

• A)a newspaper reporter who receives a plane ticket to Washington,D.C.to cover the presidential inauguration
• B)a school teacher who bought a ticket to the Summer Olympics opening ceremonies
• C)an office receptionist who renews the magazines that are found in the office waiting room
• D)a retailer who buys poster board to make signs for an upcoming store sale
• E)a landscaping firm employee who buys a new wheelbarrow to use to haul mulch

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in the evaluation of investment opportunities.

Cash Flow Stream

A series of cash inflows and outflows over a period of time, often used in financial models to determine investment viability or project returns.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost, indicating profitability.

Perpetuity

A series of payments of a fixed amount that last indefinitely.