On a purely theoretical basis, NPV is the better approach to capital budgeting than IRR because NPV implicitly assumes that any intermediate cash inflows generated by an investment are reinvested at the firm's cost of capital
Indicate whether the statement is true or false
TRUE
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Maria considers buying a car for herself, after she notices the advantages derived by her best friend from his new car. Which of the following forms of stimulus has activated Maria's problem recognition process?
A) external stimuli B) internal stimuli C) peer stimuli D) secondary stimuli E) marketing induced stimuli
Which of the following statements is true about termination by agreement?
A) A principal should give constructive notice to all third parties who dealt with an agent. B) When an agency relationship is terminated by an agent, the agent must give actual notice to all third parties who dealt with the agent. C) When an agency relationship is terminated by a lapse of time, there is no requirement to give notification to third parties. D) Constructive notice may be given to others through advertisement in newspapers published in areas where an agent operated on behalf of a principal.
Bailey Co. and Spryt Bros. enter into a contract for the manufacture and sale of 400 lawn chairs. If both parties agree that a modification is necessary,
A. the surest way to modify the contract is to liquidate it. B. they may not do so without court supervision. C. an agreement to rescind the contract will terminate the contractual rights of Bailey Co. and Spryt Bros. if neither of them had completed their obligations. D. courts will generally not enforce a cancellation and modification of a contract unless one party received inadequate consideration under the original contract.
A company sold equipment that originally cost $100,000 for $60,000 cash. The accumulated depreciation on the equipment was $40,000. The company should recognize a:
A. $0 gain or loss. B. $40,000 loss. C. $20,000 gain. D. $60,000 gain. E. $20,000 loss.