Which of the following statements is FALSE?
A) We can use scenario analysis to evaluate alternative pricing strategies for our project.
B) Scenario analysis considers the effect on net present value (NPV) of changing multiple project parameters.
C) The difference between the internal rate of return (IRR) of a project and the cost of capital tells you how much error in the cost of capital it would take to change the investment decision.
D) Scenario analysis breaks the net present value (NPV) calculation into its component assumptions and shows how the net present value (NPV) varies as each one of the underlying assumptions changes.
Answer: D
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An agent sold a property where the owner had verbally agreed to pay a commission. The agent would be legally entitled to a commission from the owner for the sale if the agent had
a. relied on the verbal promise. b. made a written memorandum of the agreement signed by the agent. c. obtained a valid buyer listing agreement. d. none of the above
All of the following are limitations on ownership of property, except:
a. zoning b. police powers c. building codes d. seisin