Which of the Following Statements Is TRUE

question 83

Multiple Choice

Which of the following statements is TRUE?

• A) It is important to adjust for the differences in the timing of benefits and costs.
• B) A dollar received today is worth more than a dollar received in the future,assuming a positive interest rate.
• C) Many fund transfers occur over long periods of time and the time frame needs to be adjusted for.
• D) All of the above statements are true.
• E) Only (a)and (b)are true

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Definitions:

Uncertain Environment

An environment that lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives.

Probabilities

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Nonprogrammed Decision

A decision made in response to situations that are unique, relatively unstructured, and undefined, often requiring creative problem-solving.

New Market

Refers to either a completely unexplored market sector or geographic area where a product, service, or business can expand.