Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) The EVA method is conceptually valid but due to the disconnect it has between accrual-based accounting and economic value coupled with increased computational complexity, it is not the most popular method for growth planning.
• B) Firms generally assumed that if ROI is greater than the firm's cost of capital then shareholder value will be created.
• C) One of the typical growth targets is depreciation.
• D) The popular growth targets tend to rely on accounting data and are typically measured on an annual basis.

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Definitions:

Average Payoff

A measure used in decision theory and game theory to determine the expected value of an investment or decision under uncertainty.

Payoff Table

A table that shows the possible outcomes or payoffs of different decisions under various states of nature or scenarios.

Mortgage Options

Various loan mechanisms available to buyers to finance the purchase of a home, including fixed-rate, adjustable-rate, and others.

Payback Period

The length of time it takes for an investment to recover its initial cost, calculated by comparing the cumulative cash flow over time.