The payback period for a project, requiring an initial outlay of $10,000 and producing ten uniform annual cash inflows of $1,500, is
A) six years.
B) six years and eight months.
C) six years and six months.
D) seven years.
B
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When the court determines that a firm's size alone is sufficient to find that it violated antitrust laws, this criterion is called
a. countervailing power b. economies of scale c. per se d. rule of reason e. natural monopoly
A corporate merger occurs when: a. two formerly separate firms combine to become one single firm
b. one firm purchases another firm. c. two formerly separate firms decide to charge the same price for a product. d. one firm follows the exact actions of another firm.
Liquidity is
A. The opportunity cost of purchasing a bond. B. Low for cash. C. Not important for bondholders. D. The ability of an asset to be converted to cash.
When Crest claims that its toothpaste product whitens teeth more than the products of its competitors, Crest is practicing
A) product differentiation. B) false advertising. C) marginal revenue pricing. D) marginal cost pricing.