CAGR (for Compound Annual Growth Rate) is the hypothetical constant interest rate that would be required for compound interest to turn a given present value into a given future value in a given amount of time. The CAGR formula is. where PV and FV are the present value and future value, and Y is number of years.
Positive and Negative externalities. An externality is defined as a benefit or cost that is imposed on a third party, such as society, other than the producer or consumer of a good or service, or, more simply, an economic side effect. The more of a product that is consumed or produced, the more of an externality that results.
The expression network effect is applied most commonly to positive network externalities as in the case of the telephone. Negative network externalities can also occur, where more users make a product less valuable, but are more commonly referred to as congestion (as in traffic congestion or network congestion).hen a network effect is present, the value of a product or service is dependent on the number of others using it. The classic example is the telephone.