The real rate of interest excludes everything except


Please mark (A) for true answers and (B) for false answers on the Scantron Card. Mark (T) or (F) at the end of each sentence on this form.

1. The “real” rate of interest excludes everything except inflation.

2. One technique for helping estimate revenues for a new product involves reviewing S-curves for similar products that are already in the market.

3. Default risk is the chance or probability of financial loss from a venture investment.

4. “Equity valuation cash flow” is defined as: EBIT – Taxes + depreciation and amortization expense – change in net operating working capital.

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Financial Management: The real rate of interest excludes everything except
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