In capital budgeting, risk refers to ________.
A) the degree of variability of the cash flows
B) the degree of variability of the initial investment
C) the chance that the net present value will be greater than zero
D) the chance that the internal rate of return will exceed the cost of capital
A) the degree of variability of the cash flows
You might also like to view...
There is one single format for a work sheet
a. True b. False Indicate whether the statement is true or false
When the cost of direct materials leaves the materials inventory account, those costs are next entered into which account?
a. Factory Overhead Costs; b. Direct Materials Inventory; c. Work in Process Inventory; d. Finished Goods Inventory; e. Products Inventory
The probability of an economic decline in the year 2008 is 0.23. There is a probability of 0.64 that we will elect a republican president in the year 2008. If we elect a republican president, there is a 0.35 probability of an economic decline. Let D represent the event of an economic decline, and R represent the event of election of a Republican president. a.Are R and D independent events?b.What is the probability of a Republican president and economic decline in the year 2008?c.If we experience an economic decline in the year 2008, what is the probability that there will a Republican president?d.What is the probability of economic decline or a Republican president in the year 2008? Hint: You want to find P(D?R).
What will be an ideal response?
Evaluation of the performance of an investment center involves only financial measures.
Answer the following statement true (T) or false (F)