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:

White Matter

White matter refers to the pale-colored part of the central nervous system that consists mostly of myelinated nerve fibers and serves to transmit signals within the brain.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for higher cognitive functions like decision making, problem solving, and controlling behavior.

Organizing

The act or process of arranging, structuring, or coordinating elements in a systematic way to achieve a specific goal or order.

Formulating Plans

The process of creating strategies or outlining steps to achieve a specific goal, often involving problem-solving and decision-making skills.