A Company Would Consider All of the Following in Computing

question 10

Multiple Choice

A company would consider all of the following in computing the IRR of an investment, except

• A)predicted cash inflows over the life of the project.
• B)the cost of the project.
• C)depreciation expense on the assets of the project.
• D)present value factors.

---

Definitions:

Independent Samples

Two or more groups of observations that are collected from separate populations and are not related or connected in any way.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of making a Type I error.

Test Statistic

A calculated value used in statistical testing to determine whether to reject the null hypothesis.

T Value

A measure derived in a t-test that shows the size of the difference relative to the variation in your sample data.