Question 17 Consider the following two statements concerning risk analysis: 1. Sensitivity analysis provides clear decision rules concerning acceptance or rejection of an investment project. 2. The risk-adjusted discount rate adds a risk premium to the expected rate of inflation V to derive a discount rate for investment projects. Which one of the following combinations (true/false) relating to the above statements is correct? Statement True True True False False True False False none of the above Question 18 The best transfer price for goods or services between divisions is one based on A) variable cost B) full cost C) negotiated price D) opportunity cost E) the cost decided by the CEO Question 19 The residual income approach to measuring divisional performance measurement is closely related to the _method of performance measurement A) internal rate of return B) economic value added C) return on capital employed ) payback period E) accounting rate of return