If Investment Funds Are Limited, the Net Present Value of One

question 312

True/False

If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal.

---

Definitions:

Gas Prices

The cost per unit of gasoline, typically measured per gallon or liter, and fluctuates based on factors such as crude oil prices, taxes, and supply and demand.

σ (Standard Deviation)

A statistical measure of the dispersion or variation of a set of values, representing the average distance from the mean.

μ (Mean)

A symbol representing the mean or average of a set of numbers, calculating by summing all numbers and dividing by the count of numbers.

Cumulative Distribution Function

A function that gives the probability that a random variable is less than or equal to a certain value.