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:

M'Naghten Rule

A legal principle that defines the insanity defense by assessing if a defendant was unable to understand the nature of their actions or distinguish right from wrong at the time of the crime.

Irresistible Impulse Test

A legal test for insanity that assesses if a defendant was unable to control his or her actions due to a mental illness.

Civil Commitments

A legal process through which an individual with severe mental illness can be court-ordered to receive treatment in a hospital or community-based setting.

Involuntarily

Occurring without one's consent or control.