Indicate whether each of the following statements is true or false.If two capital investments both have positive net present values, both offer an actual rate of return that is higher than the required rate of return. ______Company M has two potential capital investments, each of which has a positive net present value. M can only accept one of the investments. In this situation, it should always accept the project that has the higher net present value. ______Net present value is calculated by dividing the present value of cash inflows by the present value of cash outflows associated with a capital investment. ______The present value index can be used to compare different capital investment projects. ______The higher the present value index, the lower the rate of return per dollar
invested in the project. ______
What will be an ideal response?
If two capital investments both have positive net present values, both offer an actual rate of return that is higher than the required rate of return. T
Company M has two potential capital investments, each of which has a positive net present value. M can only accept one of the investments. In this situation, it should always accept the project that has the higher net present value. F
Net present value is calculated by dividing the present value of cash inflows by the present value of cash outflows associated with a capital investment. F
The present value index can be used to compare different capital investment projects. T
The higher the present value index, the lower the rate of return per dollar invested in the project. F
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New product development starts with ________
A) concept development B) idea screening C) idea generation D) concept testing E) test marketing
As a form of advertising, packaging does very little to promote the brand.
Answer the following statement true (T) or false (F)
Evidence in favor of market efficiency includes
A) performance of investment analysts and mutual funds. B) whether stock prices reflect publicly available information. C) the random-walk behavior of stock prices. D) all of the above.
Indicate whether each of the following statements regarding internal controls is true or false. ________ a) Internal controls are used to provide reasonable assurance that the objectives of an enterprise will be accomplished.________ b) Internal controls can be divided into accounting controls and administrative controls.________ c) The mechanics of internal control systems do not vary from company to company.________ d) Accounting controls are concerned with the evaluation of performance and the assessment of the degree of compliance with company policies and public laws.________ e) Administrative controls are composed of policies and procedures that are designed to safeguard the assets and to assure that accounting records contain reliable information.
What will be an ideal response?