When several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable. If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a(n):
A) average rate of return
B) consumer price index
C) present value index
D) price-level index
C
Business
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The problem of nonconstant error variance is detected in residual analysis by which of the following?
A) a cone pattern B) an arched pattern C) a random pattern D) an increasing pattern E) a decreasing pattern
Business
Generally speaking, a higher financial leverage ratio will result in an increase in a firms ROE and also reduce risk to shareholders
Indicate whether the statement is true or false
Business