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.
Negative and positive externalities. In the case of pollutionâthe traditional example of a negative externality âa polluter makes decisions based only on the direct cost of and profit opportunity from production and does not consider the indirect costs to those harmed by the pollution.here are differences between private returns or costs and the costs or returns to society as a whole. Smoking is bad for you (photo: Radius Images/Corbis). Consumption, production, and investment decisions of individuals, households, and firms often affect people not directly involved in the transactions.