A Disadvantage of Factor Analysis Is That It Does Not

question 29

True/False

A disadvantage of factor analysis is that it does not permit hypotheses to be disconfirmed.

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Definitions:

Profitability Index

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

Cash Inflows

Money received by a business from its operational, financing, or investment activities.

Investment Projects

Initiatives undertaken by a business or organization to invest in new assets, technology, or resources with the expectation of generating future benefits.

Total-Cost Approach

A pricing strategy that considers all costs associated with producing and delivering a product or service to determine its selling price.