Case-Based Critical Thinking Questions

question 58

Multiple Choice

Case-Based Critical Thinking Questions
Case 8-4
The following formula is used to determine Dean's List status: =AND(B1>=12,B2>3.25) .
Use the information provided to evaluate the formula.
Assuming that B1 contains 15 and B2 contains 3.5, then _______.

• A) the formula indicates that the student is on the Dean's List
• B) the formula indicates that the student is NOT on the Dean's List
• C) the formula returns a value of 0
• D) the formula returns an error message

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Definitions:

Internal Rate

The discount rate at which the net present value of all cash flows from a particular project or investment equals zero, used in evaluating the profitability of investments.

Accept

To agree to take or receive something offered.

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated by dividing the present value of future cash flows by the initial investment.

Positive NPV

A scenario in which the net present value of a project's cash inflows exceeds its cash outflows, indicating profitability.