The formula holds that each cross-tabulation cell expected frequency be subtracted from its associated observed frequency, and then that difference be squared to avoid a cancellation effect of minus and plus differences

The profitability index for a project costing $45,000 and returning $20,000 annually for 5 years at an opportunity cost of capital of 14% is:

a. .526 b. 1.222 c. .655 d. .911

A law firm provides legal services for clients who do not pay immediately. There is no effect on the counting equation until the client pay for the services

Indicate whether the statement is true or false