Which of the Following Statements Is CORRECT

question 39

Multiple Choice

Which of the following statements is CORRECT?

• A) If CF₀ is positive and all the other CFs are negative, then you can still solve for I.
• B) 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.
• C) 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.
• D) 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.
• E) If you solve for I and get a negative number, then you must have made a mistake.

---

Definitions:

Crisis Management Teams

Groups of individuals within an organization tasked with preparing for, responding to, and managing crises or emergencies that affect the organization's operations or reputation.

Guilt

A psychological condition characterized by feelings of responsibility or remorse for some offense, crime, wrong, etc., whether real or imagined.

Fear

An unpleasant emotional state triggered by the perception of threat, leading to avoidance or defensive behavior.

Formal Safety Program

A structured set of guidelines and procedures designed to minimize accidents and injuries in the workplace.