Indicate Whether Each of the Following Statements Is True or False

question 91

Short Answer

Indicate whether each of the following statements is true or false.
1. When unequal cash inflows are expected from a capital investment, the payback period can be calculated by accumulating incremental cash inflows or by using average annual cash inflows.
2. The unadjusted rate of return is also called the simple rate of return.
3. The unadjusted rate of return can be calculated as average increase in cash inflows divided by net cost of the original investment.
4. The unadjusted rate of return does not take the time value of money into account.
5. The unadjusted rate of return should be calculated using the initial cost of the investment, rather than the average invested capital.

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Definitions:

Economic Diversification

The process of expanding an economy to include a wider array of industries and services to reduce dependence on any single economic sector.

Dictatorial Regimes

Dictatorial regimes are governments ruled by a single leader or a small group of individuals who exercise absolute power, often suppressing opposition, controlling the media, and limiting personal freedoms.

Wendell Willkie

An American lawyer and corporate executive who ran as the Republican presidential candidate against Franklin D. Roosevelt in 1940, advocating for liberal principles.

Adolf Hitler

The leader of Nazi Germany from 1933 to 1945, whose regime was responsible for the outbreak of World War II and the atrocities of the Holocaust.