Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A)Firms calculate present values when they make investment decisions because investment decisions yield benefits in the future and firms want some idea of the value of these benefits.
• B)The present value of $100 a year from today at a 10 percent interest rate is approximately $91.
• C)The present value of $100 two years from today at a 10 percent interest rate is approximately $83.
• D)A firm will not undertake an investment if the present value of the future income resulting from the investment is greater than the cost of the investment.

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Definitions:

Conflict Strategies

Approaches used to handle or resolve disputes and disagreements among individuals or groups.

Reverse Brainstorming

A problem-solving technique that involves identifying all the ways a goal cannot be achieved in order to find solutions to overcome those barriers.

Multi-attribute Utility Analysis

A decision-making framework or tool that evaluates choices based on multiple criteria or attributes.

Synectics

A problem-solving methodology that encourages creative thinking, often by drawing analogies or by considering seemingly irrelevant elements.