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.

---

Definitions:

Internal Conflict

A psychological struggle within the mind of an individual, arising from opposing demands or impulses.

Major Types

Principal or most significant categories or forms within any general field of study or area of interest.

Conform to Expectations

The behavior of adjusting one's actions, attitudes, or beliefs to match those of a group or societal standards.

Perform

To carry out, execute, or conduct an activity or task.