Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)The actual return kept by an investor will depend on how the interest is taxed.
• B)The equivalent after-tax interest rate is r(1 - τ).
• C)The highest interest rate,for a given horizon,is the rate paid on U.S.Treasury securities.
• D)It is important to use a discount rate that matches both the horizon and the risk of the cash flows.

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Definitions:

Learning Curves

Graphical representations that illustrate the improvement in performance or efficiency of a process as it is repeatedly performed.

Labour Needs

The amount and type of workforce required by an organization to achieve its objectives effeciently.

Simplest Approach

The method or solution that involves the least complexity or fewest steps to address a problem or task.

Learning Curve Coefficients

Quantitative measures that describe the rate at which learning and efficiency improvements occur over time in performing a task.