Question

A financial product must have which of the following?

A. something of tangible value

B. money involved

C. a promise of something in the future

D. all of the above

The cost of producing electricity with windmills is far higher than the cost of producing the same amount of electricity with hydrocarbons. Which statement is accurate?

A. An electric company would be more likely to reject a windfarm project using the discounted cash flow approach for calculating the net present value of a windfarm project.

B. An electric company using "true" rather than "static" NPV analysis would be more likely to accept a windfarm if electricity demand were highly volatile.

C. Neither of the those statements is accurate.

D. Both of those statements are accurate.

Answer 1

A financial product must have the following =

Answer = D) All of the above

A Financial product must have something of tangible value, money involved, and a promise of something in the future.

The cost of producing electricity with windmills is far higher than the cost of producing the same amount of electricity with hydrocarbons. Which statement is accurate?

Answer = d) D. Both of those statements are accurate

An electric company would be more likely to reject a windfarm project using the discounted cash flow approach for calculating the net present value of a windfarm project.

and An electric company using "true" rather than "static" NPV analysis would be more likely to accept a windfarm if electricity demand were highly volatile.