Which of the Following Is NOT a Good Reason for Using

question 47

Multiple Choice

Which of the following is NOT a good reason for using secondary data?

• A) Data on the past cannot be collected today.
• B) Even if the definitions of variables being studied are not the same, research can be modified according to secondary data available.
• C) The time involved in primary data collection may render the study obsolete.
• D) Authentic data required may already have been collected by other agencies.

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Definitions:

Erosion

In finance, the gradual reduction of the value of an asset or earnings, often due to external factors or new projects cannibalizing existing project revenues.

Incremental Cash Flows

The additional cash flows a business expects to generate from taking on a new project or making an investment decision.

After-Tax Salvage Value

The net value of an asset after it has been disposed of and all related taxes have been paid.

Capital Budgeting Analysis

The process of evaluating and selecting long-term investments that are in line with the goal of an investor or firm's strategic plan.