Answer the following statements true (T) or false (F)
1) Management's minimum desired rate of return on a capital investment is known as the return on investment.
2) The residual value is discounted as a single lump sum because it will be received only once, when the asset is sold.
3) The net present value method of evaluating capital investments suggests that an investment with discounted net cash inflows which exceed the initial cost of the investment is desirable.
4) The present value of future cash inflows received in earlier years is higher than future cash inflows received in later years.
5) An opportunity cost is the benefit foregone by choosing an alternative course of action.
1) FALSE
2) TRUE
3) TRUE
4) TRUE
5) TRUE
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Which term describes the ability of a firm/industry, under free and fair market conditions, to design, produce, and market goods and services that are better and/or cheaper than those of other firms/industries?
a. competitiveness b. protectionism c. comparative advantage d. absolute advantage
A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150 . If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately $50
a. True b. False Indicate whether the statement is true or false
Polling is one technique used to control data collisions
Indicate whether the statement is true or false
It is alleged that markets fail, in some situations, to insure a fair price and thereby limit consumers' freedom. Which statement does not support that allegation?
A. Monopolistic pricing limits the variety of products available to consumers. B. The more uniformity of prices one finds within an industry, the less likely it is that competition exists. C. From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue. D. Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.