Unsophisticated capital budgeting techniques do not:
A) examine the size of the initial outlay.
B) use net profits as a measure of return.
C) explicitly consider the time value of money.
D) take into account an unconventional cash flow pattern.
C
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A mortgage where the interest owed changes in response to movements in a specific market-determined interest rate is called a(n) __________ .
A. HELOC B. fixed-rate mortgage C. adjustable-rate mortgage D. second mortgage
Alice, a middle manager in an oil company, makes $35,000 a year. Her boss makes $41,000, her peers average $33,000, and her employees average $29,000. Alice doesn't know the pay of these co-workers, but we ask her to guess. Research suggests that she will say
A) the employees average $28,000. B) the boss makes $43,000. C) the peers average $34,000. D) the boss makes $45,000. E) the peers average $30,000.