In Order to Be Valid,a Sample Must

question 31

Multiple Choice

In order to be valid,a sample must

• A)be a large percentage of the total population.
• B)consist of persons over age eighteen.
• C)be representative of the population.
• D)consist of fairly homogeneous subjects.

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Definitions:

Cost of Capital

Cost of capital refers to the minimum rate of return a company must earn on its investments to satisfy its investors, creditors, and other providers of capital.

NPV

Net Present Value, a method for assessing the worth of a project or investment by applying a discount rate to future cash flows to ascertain their current value.

Crossover Rate

The rate at which two projects have the same net present value, used in capital budgeting to compare the attractiveness of different projects.

Mutually Exclusive

Mutually exclusive projects or events are those that cannot occur simultaneously; choosing one option means the other cannot be selected.