If the cash flows of a project are received evenly over the life of the project, the formula for the calculating the payback period is

A) original investment/annual cash flow.
B) original investment x annual cash flow.
C) original investment + annual cash flow.
D) original investment - annual cash flow.
E) (original investment + annual cash flow)/annual cash flow.


A

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Which of the following statements is CORRECT?

A. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its customers. Thus, cannibalization is dealt with by society through the antitrust laws. B. If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward. C. If cannibalization is determined to exist, then this means that the calculated NPV if cannibalization is considered will be higher than the NPV if this effect is not recognized. D. Cannibalization, as described in the text, is a type of externality that is not against the law, and any harm it causes is done to the firm itself. E. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its competitors. Thus, cannibalization is dealt with by society through the antitrust laws.

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By comparing ethical theories to foreign languages, the text is suggesting that ______.

a. ethical problems are best solved by having each participant attack it using a different ethical theory b. we should seek to find common ground by adopting the same ethical theory to work on a problem c. ethical theories are rarely compatible with each other when working on ethical problems d. ethical problems are best solved by viewing them from another’s perspective

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Identify the verb in the sentence. He approves all travel requests

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"If my niece has predeceased me, then I give my double-barrel shotgun to my nephew" is what type of gift?

A) Residuary. B) Specific. C) Barbaric. D) General.

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