1. NPV methods can be used to estimate the present value of a customer to a business so that strategic decisions can be made to retain customers and lower churn rates.

True

False

2. The real approach to incorporating inflation into the net present value method predicts ________.

A. cash inflows and outflows in nominal monetary units and uses a real rate as the required rate of return

B. cash inflows and outflows in monetary units that are adjusted for inflation and uses a real rate as the required rate of return

C. cash inflows and outflows in real monetary units and uses a nominal rate as the required rate of return

D. cash inflows and outflows in real monetary units and uses a real rate as the required rate of return

3. Transfer- pricing systems enable managers to focus on maximizing the performance of their subunits.

True

False