Which of the following statements is CORRECT?
A. If you have a series of cash flows, each of which is positive, you can solve for I, where the solution value of I causes the PV of the cash flows will be more than the cash flow at Time 0.
B. If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost.
C. To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the FV of the negative CFs. It is impossible to find the value of I without a computer or financial calculator.
D. If you solve for I and get a negative number, then you must have made a mistake.
E. If CF0 is positive and all the other CFs are negative, then you can still solve for I.
Answer: E
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Opening questions should be used to get at the purpose of the questionnaire quickly
Indicate whether the statement is true or false
Regarding the use of a spreadsheet for the preparation of the statement of cash flows, which of the following statements is TRUE?
A) The T-account approach works well for all companies. B) The statement of cash flows cannot be prepared directly from the spreadsheet because additional information is needed. C) The spreadsheet is needed when companies face complex situations. D) The spreadsheet can only be used if the indirect method for operating activities is also used.
Which of the following is not a core driver of the information age?
A. Knowledge B. Internet of Things C. Data D. Information
Which of the following is not a primary goal of a cost management system?
a. use cost drivers to develop product costs b. improve understanding of activities c. develop organizational strategies d. measure performance