Financing Decisions Differ from Investment Decisions for Which of the Following

question 50

Multiple Choice

Financing decisions differ from investment decisions for which of the following reasons?

• A)You cannot use NPV to evaluate financing decisions.
• B)Markets for financial assets are more active than for real assets.
• C)It is easier to find financing decisions with positive NPV than to find investment decisions with positive NPV.
• D)You cannot use NPV to evaluate financing decisions, and it is easier to find financing decisions with positive NPV than to find investment decisions with positive NPV.

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Definitions:

Classes

Categories or groups into which data or objects are organized based on shared characteristics or properties.

Cumulative Frequency Distribution

A tabular summary of quantitative data showing the number of data values that are less than or equal to the upper class limit of each class.

Relative Frequency

The proportion of occurrences of a specific event compared to the overall amount of attempts or observations.

Nonoverlapping Classes

Categories or groups in a classification system where each member of the population belongs to one and only one group, ensuring distinct boundaries.