Starbucks is considering opening a new store on the Drexel University Campus in Philadelphia
To analyze this decision Starbucks must compare the costs of starting the new store, which will be incurred today, with the profit the store will create in the future. When making this decision, the higher is the interest rate, the ________ is the discounted present value of the profits and the ________ likely Starbucks will be to open the store. A) higher; more
B) higher; less
C) lower; more
D) lower; less
D
You might also like to view...
The accompanying supply-demand diagram shows the market for calculators. The initial price of calculators is P0, and the initial quantity exchanged is Q0.
Which of the following situations could be correctly illustrated by the diagram?
a. Graphing capabilities and other new features lead people to buy more calculators.
b. The cost of memory chips used in calculators falls, lowering the price of calculators.
c. Personal computerized notepads with substantial computing power are introduced, reducing people's need for calculators.
d. A heavy tariff is placed on calculators imported from overseas.
The Federal Reserve System is divided into
A. 7 districts. B. 5 districts. C. 15 districts. D. 12 districts.
Figure 15-1 above displays the consumption pattern over the lifetime of an individual. Saving and asset accumulation occur during the years ________ according to ________ theory of consumption
A) R to L; Keynes' B) R to L; Modigliani's C) O to R; Friedman's D) O to R; Modigliani's
Since the early 1970s, average incomes have
a. increased, which has reduced the poverty rate. b. increased, while the poverty rate increased slightly. c. decreased, while the poverty rate has remained unchanged. d. remained unchanged, while the poverty rate has decreased.