The decision rule for the profitability index is that any project with ________ is an acceptable project
A) a ratio less than one
B) a ratio greater than one
C) a ratio greater than zero
D) a ratio less than zero
B
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Ziker Golf Company is evaluating a capital budgeting project that has a higher risk than the average risk of its existing assets. When evaluating projects that are riskier than average, Ziker normally adjusts its required rate of return by 4 percent. Ziker requires a 12 percent return on average-risk projects. What required rate of return should Ziker use to compute the net present value (NPV) of the risky project it is currently evaluating?
A. 8% B. 12% C. 16% D. 10% E. 48%
Corporate venture capital funds are subsidiaries of financial institutions, particularly banks, set up to help young firms grow and, it is hoped, become major customers of the institutions
Indicate whether the statement is true or false
Consumer juries and portfolio tests are examples of
A. posttest field methods. B. pretest laboratory methods. C. single-source real world methods. D. posttest laboratory methods. E. pretest field methods.
In a lower one-tail hypothesis test situation, the p-value is determined to be 0.2 . If the sample size for this test is 51, the t statistic has a value of
a. 0.849 b. -0.849 c. 1.299 d. -1.299