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Midterm Exam #1 1. (10 points) True/False (2 points for each statement) Circle the correct answer for the following statements (No need to show your work). a) If you multiply the A/F, F/P, and P/G factors together, you will obtain True False the value for the G/A factor. b) To double an investment at an interest rate of 6% per year, it will take True False almost 12 years. c) For an arithmetic gradient series of monthly cash flows that begins at True False the end of 25th month, the A/G factor will yield an "A" value beginning at the end of two years. d) Consider arithmetic gradient series, G = 100, starting at time period 7 True False with five cash flows. An equivalent uniform series A, starting at time period 2 for four time periods is obtained by 100(P/G. 1%, 6)(P/F, 1%, 4)(A/P. 1%, 4) e) Regarding a specific demand level D, the total cost is equal to the total True False revenue. By increasing the amount of demand from level D, the net benefit (total revenue - total cost) is certainly increased