In a regression analysis, if r2 = 1, then _____
a. SSE must also be equal to 1
b. SSE must be equal to 0
c. SSE can be any positive value
d. SSE must be negative
b
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The government must pay when it exercises its right of eminent domain.
Answer the following statement true (T) or false (F)
The depreciation method that allocates an equal amount of depreciation each year is called the straight-line method
Indicate whether the statement is true or false
Derek owns a perpetuity contract that promises to pay him $1,000 per year in end-of the-year cash flows with the first cash flow beginning one year from today. Derek perceives some risk with the promised cash flows and has discounted them at an annual rate of 10.00% to determine the present value of the contract. Derek has offered to sell a portion of the contract to his brother Cam. The agreement is that Derek will keep the first 25 cash flows and that Cam will keep the remaining cash flows beginning with the first cash flow 26 years from today. What is the present value of the original contract?
What is the present value of the first 25 cash flows? What is the present value of the cash flows received in year 26 and beyond? If Derek makes the deal as described and charges Cam $1,000 for the year 26 and beyond cash flows, which brother is getting a better deal? Please provide dollar values for each of these questions.
The production budget is typically prepared prior to the sales budget.
Answer the following statement true (T) or false (F)