In a benefit-cost analysis, the determination of feasibility
a. can be made by finding out if PVB/PVC is greater than unity
b. is not critical and therefore is an optional step
c. can be accomplished by finding out if PVNB is greater than zero
d. all of the above
e. (a) and (c) only
e. (a) and (c) only
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If R2 is less than 1
A) the regression analysis is incorrect. B) the observation data is suspect. C) some observations do not lie on the regression line. D) the probability of having the correct fit is very low.
If a price ceiling is imposed,
a. the market supply curve shifts to the right b. the market demand curve shifts to the left c. an excess demand for the good results d. the government would be required to buy the excess supply of the good e. the equilibrium price falls below the price level the government wishes to achieve
Taxation is an important cash flow issue, but it typically does not have a strong impact on the choice of organizational form (such as branch or subsidiary) or the location of an investment.
a. true b. false
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.