When evaluating a business decision, an economist will often resort to the use of present value because
A. the profits may not be large enough to warrant the time and attention of the investor.
B. the investment is often under one set of managers and the profits under another.
C. the investment is often in one currency and the profits in another.
D. the investment occurs in one time period and the profits in another.
Answer: D
You might also like to view...
The higher the insurance coverage, the ________ the policyholder can gain from risky activities that make an insurance payoff ________ likely
A) more; less B) more; more C) less; less D) less; more
Suppose a person has a discount rate of zero. This implies she
A) places no value on the future. B) places no value on the present. C) values the present and the future equally. D) would not lend money at any positive interest rate.
Which of the following is equivalent to the trade deficit?
a. Imports ? exports b. Net capital inflow c. Exports + imports d. Net exports - imports e. Exports ? imports
The type(s) of merger(s) that directly increase(s) concentration in an industry is (are)
a. horizontal b. vertical c. conglomerate d. both vertical and horizontal e. both vertical and conglomerate