Which of the Following Statements Is False

question 51

Multiple Choice

Which of the following statements is false?

• A) Traditionally, managers have used the equivalent annual benefit method to choose between projects of different lives.
• B) The equivalent annual benefit method ignores the value of any real options because it assumes that the projects will always be replaced at their original terms.
• C) If the future costs (or benefits) are certain with mutually exclusive projects, then we must use a real options approach to determine the correct decision.
• D) The equivalent annual benefit method accounts for the difference in project lengths by calculating the constant payment over the life of the project that is equivalent to receiving the NPV today and then selecting the project with the higher equivalent annual benefit.

---

Definitions:

Unions

Organizations formed by workers to protect and advance their rights and interests.

Individual Resistance

The act of an individual opposing or fighting against conventions, norms, social injustices, or institutional requirements.

Office Workers

Individuals employed in a professional environment, typically within an office setting, performing administrative duties or other specialized tasks.

Daydreaming

The act of engaging in spontaneous and self-generated thoughts and fantasies, typically disconnected from immediate tasks or surroundings.