Ditiple-Choices Questions: Circle the correct answer. s day/time 4 points/correc

Question

Ditiple-Choices Questions: Circle the correct answer. s day/time 4 points/correct answer, 40 points total) 1. The net cash flow is the arithmetic sum of each receipts (e) and the disbursement (-) that each individual transaction may occur at any different point in time. A. True B. False 2. Feed-back process is the last step of decision-making process A. True B. False 3. In the decision-making process, you identify feasible alternatives in the synthesis stop A. True B. False 4. Goal Definition is the first step of decision-making process A. Truc B. False 5. "Cash period of time. Theref A. True flow diagram" is a graphical description of each altemative's cash transactions over a ore, problem statement can be mosthy described by its cash flow diagram B. False loan of $20,000 in 48 month(A) with i"1.25% per month. year equal to 16075% which is the Ar $20,000 in 6- Therefore, your effective rate of interest per A. True 6. You have to repay your car B. False 7. You have to repay your car $20,000 Therefore, your effective rate of interest A. True loan of S20000i, 48 month (A) with ¡"1.25% per mon pei month as eoud to 1.3995 B False

Explanation / Answer

(1) True

Net cash flow = Cash inflows (revenues) - Cash outflows (costs)

(2) True

Feedback helps evaluate the effectiveness of decision making process.

(3) True

In synthesis stage, feasible set of options is narrowed down for comparison and evaluation.

(4) True

Decision making starts with identifying and defining a clear goal.

NOTE: As per Answering Policy, 1st 4 questions have been answered.

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