Answer the following statements true (T) or false (F)
1) The payback method considers cash flows that occur both during and after the payback period.
2) The payback method is used only when the net cash inflows from a capital investment are the same for each period.
3) Managers generally use payback as the sole method for deciding whether to invest in an asset.
4) The payback method uses discounted cash flows to make investment decisions.
5) Both the payback and the accounting rate of return methods focus on cash flows that an asset generates.
1) FALSE
2) FALSE
3) FALSE
4) FALSE
5) FALSE
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Convertible bonds are attractive to investors because
a. they usually carry a higher rate of interest than non-convertible bonds. b. they carry a convertible interest rate that can be increased when the prime rate of interest increases. c. they can be converted into stock at the issuer's option. d. the issuing company cannot retire the bonds before maturity.
______ leaders promote stability rather than change and are described as task and reward oriented, structured, and passive.
a. Charismatic b. Servant c. Transactional d. Visionary
Velocity is the reciprocal of cycle time
Indicate whether the statement is true or false
Purchase occasion is a psychographic variable used to segment consumer markets.
Answer the following statement true (T) or false (F)