Events A and B are said to be collectively exhaustive if their intersection is the empty set
Indicate whether the statement is true or false
FALSE
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Which of the following statements concerning guaranteed residual values is appropriate for the lessee?
a. The asset and related liability should be increased by the amount of the residual value. b. The asset and related liability should be decreased by the amount of the residual value. c. The asset and related liability should be decreased by the present value of the residual value. d. The asset and related liability should be increased by the present value of the residual value.
Acme Company has three identical manufacturing plants, one on the Texas Gulf Coast, one in southern Alabama, and one in Florida. Each plant is valued at $200 million
Acme's risk manager is concerned about the damage which could be caused by a single hurricane. The risk manager believes there is an extremely low probability that a single hurricane could destroy two or all three plants because they are located so far apart. What is the probable maximum loss associated with a single hurricane? A) $0 million B) $200 million C) $400 million D) $600 million
Jennifer purchased Cascade 2-in-1 ActionPacs for her dishwasher. The packaging said the product combines the scrubbing power of Cascade with the grease fighting power of Dawn dishwashing detergent. What type of cobranding does this product represent?
A. cooperative B. complementary C. piggyback D. ingredient E. synergistic
Mulford Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$80,000 Expected life of the project 4 Salvage value of equipment$0 Annual sales$250,000 Annual cash operating expenses$200,000 Working capital requirement$20,000 One-time renovation expense in year 3$20,000 The company's income tax rate is 30% and its after-tax discount rate is 12%. The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The income tax expense in year 2 is:
A. $9,000 B. $3,000 C. $6,000 D. $15,000