Space TripsInc files a registration statement with the SEC before making an offering to the general public. The registration contains false, immaterial statements of which the investors are unaware. Space Trips is charged with violating the Securities Act of 1933. Space Trips's best defense is
a. the investors were not aware of the misrepresentations.
b. the issuer reasonably believed the misstatements were true.
c. the offering was made available to the general public.
d. the untrue statements were not material.
D
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?Ace Inc. is evaluating two mutually exclusive projects-Project A and Project B. The initial cash outflow is $50,000 for each project. Project A results in cash inflows of $15,625 at the end of each of the next five years. Project B results in one cash inflow of $99,500 at the end of the fifth year. The required rate of return of Ace Inc. is 10 percent. Ace Inc. should invest in:
A. ?Project B because it has no cash inflows in the first four years of its life. B. ?Project B because it has a higher net present value (NPV). C. ?Project A because it will yield cash every year for five years. D. ?Project A because it has a positive net present value (NPV). E. ?Project A because it will generate cash in the initial years of its life.
Which of the following statements is false?
A) The NPV will be positive if the IRR is less than the cost of capital. B) If the multiple IRR problem does not exist, any independent project acceptable by NPV method will also be acceptable by the IRR method. C) When IRR = k (the cost of capital), NPV = 0. D) The IRR can be positive even if the NPV is negative. E) The NPV method is not affected by the multiple IRR problem.
Drawbacks to prototyping include:
A) a tendency to create formal documentation of systems requirements which can then make the system more difficult to develop into a fully working system. B) using when requirements are not clear. C) creating when tools and data are readily available. D) checks in the SDLC are bypassed so that some more subtle, but still important, system requirements might be forgotten. E) support from management.
In infinite queuing theory, the average number in the waiting line divided by the average arrival rate yields what measure of waiting line performance?
Fill in the blank(s) with the appropriate word(s).