According to the principle of asset valuation, the value of any asset is equal to
a. the sum of all the future benefits it generates
b. the revenue it generates during its first year
c. the sum of the present values of all the future net benefits it generates
d. the ratio of its final year's benefits to its price
e. the sum of all future benefits it generates minus its price
C
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Who benefits from an import quota on a good?
A) domestic consumers of the good B) foreign governments C) domestic producers of the good D) foreign producers of the good
Like the monetarists, new classical economists favor
a. money growth aimed at achieving a nominal GDP target. b. discretionary policy action. c. a money growth rate that stabilizes output. d. a money growth rule that guides monetary policy.
Social insurance programs are conditioned on events, rather than means
Indicate whether the statement is true or false
When the marginal rate of return expected from a purchase of equipment is less than the market interest rate, then the firm should
a. seek government assistance in decreasing the market interest rate b. inform stockholders that the company can expect increased earnings from the purchase c. either purchase or not purchase the equipment depending on the marginal resource cost of the equipment d. purchase the equipment e. not purchase the equipment