If exchange rates were fixed, investors and traders would be relatively certain about the current and near future exchange value of each currency
Indicate whether the statement is true or false.
Answer: TRUE
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Answer the following statements true (T) or false (F)
According to SFAS No. 115, the fair market value method applies for investments of less than 50 percent where market values are readily determinable
It is now near the end of May and you must prepare a forecast for June for a certain product. The forecast for May was 900 units. The actual demand for May was 1000 units. You are using the exponential smoothing method with ?= 0.20
The forecast for June is: A) fewer than 925 units. B) greater than or equal to 925 units but fewer than 950 units. C) greater than or equal to 950 units but fewer than 1000 units. D) greater than or equal to 1000 units.
A price standard is the price that should be paid per output unit for the input.
Answer the following statement true (T) or false (F)
Which one of the following statements is most CORRECT?
A. Real options change the size, but not the risk, of projects' expected NPVs. B. Real options change the risk, but not the size, of projects' expected NPVs. C. Real options can reduce the cost of capital that should be used to discount a project's expected cash flows. D. Very few projects actually have real options. They are theoretically interesting but of little practical importance. E. Real options are more valuable when there is very little uncertainty about the true values of future sales and costs.