Which of the Following Statements Is CORRECT

question 139

Multiple Choice

Which of the following statements is CORRECT?

• A) If you have a series of cash flows, each of which is positive, you can solve for I, where the solution value of I causes the PV of the cash flows to equal the cash flow at Time 0.
• B) If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost.
• C) To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the FV of the negative CFs. It is impossible to find the value of I without a computer or financial calculator.
• D) If you solve for I and get a negative number, then you must have made a mistake.
• E) If CF0 is positive and all the other CFs are negative, then you can still solve for I.

---

Definitions:

Diabetes

A chronic condition that affects how the body processes blood sugar (glucose).

Sandwich

A food item consisting of one or more types of food, such as meat, cheese, or vegetables, placed between slices of bread.

Atherosclerosis

Condition in which arteries stiffen, and the walls accumulate cholesterol and fat plaques, which reduce blood flow; a cause of heart disease.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, heart rhythm problems, and congenital heart defects.