Which of the Following Statements Is FALSE

question 1

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.

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Definitions:

Graphic Rating Scale

A scale that uses graphics or symbols to represent different levels of performance or satisfaction, allowing individuals to mark their position on a continuum.

Checklist

A list of items or tasks that are checked off as they are completed or noted.

Behavior Rating Scale

A tool used to measure and assess an individual's behaviors, attitudes, or psychological responses, often employed in educational and clinical settings.

Structured Interview

A method of data collection where the interviewer follows a predetermined set of questions, ensuring consistency and comparability of responses across participants.