Which of the Following Statement Is True

question 48

Multiple Choice

Which of the following statement is true?

• A)One must know the discount rate to compute the NPV of a project but one can compute the IRR without referring to the discount rate.
• B)One must know the discount rate to compute the IRR of a project but one can compute the NPV without referring to the discount rate.
• C)Payback accounts for time value of money.
• D)There will always be one IRR regardless of cash flows.
• E)Return on equity is the ratio of total assets to total net income.

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Definitions:

Cost of Goods Sold

The explicit costs related to manufacturing goods that a company sells, including both materials and labor.

Primary Revenue Model

The main method through which a business generates income from its products or services, such as subscription fees, sales, or advertising.

Revenue Model

describes how a business generates income through various streams such as product sales, subscription fees, or advertising revenues.

Entrepreneur

An individual who initiates, organizes, and operates a business venture, taking on financial risk in the hope of profit.