Which of the Following Statement Is True

question 7

Multiple Choice

Which of the following statement is true?

• A) One must know the discount rate to compute the NPV of a project but one can compute the IRR without referring to the discount rate.
• B) One must know the discount rate to compute the IRR of a project but one can compute the NPV without referring to the discount rate.
• C) Payback accounts for time value of money.
• D) There will always be one IRR regardless of cash flows.
• E) Return on equity is the ratio of total assets to total net incomE.

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Definitions:

Systematic Desensitization

A therapeutic intervention used to reduce fear or anxiety towards a specific object or situation by gradually exposing the patient to the anxiety-producing stimulus.

Flooding

A psychological therapy technique for treating phobias and other stress disorders where the person is exposed to a vast quantity of their source of fear all at once.

Feared Stimuli

Objects, scenarios, or situations that evoke a strong fear response in an individual.

Taijinkyofu-sho

A culturally specific syndrome in Japan characterized by an intense fear of offending others through one's body odor or appearance.