Select only the statement that are true:Select only the statement that are true:

A$.$ The effects of inflation are removed when the real interest rate is used.

B$.$ None of the other statements$/$options is correct.

C$.$ R$1000$ today, in $2021,$ will in two years' time, in $2023,$ have the power to

purchase goods worth R$950$ today, if a constant inflation rate of $5\%$ applies.

D$.$ Inflation increases the purchasing power of money.

Select only the statement that are true:

A$.$ When dealing with very complex issues, models are often used to simplify the

situation by focusing on a few essential variables.

B$.$ Earnings per share can be calculated by dividing the total earnings available to

the company$`$s stockholders by the number of common stock outstanding.

C$.$ None of the other statements$/$options is correct.

D$.$ The higher the risk associated with a project or a corporation the lower the

required expected return by investors would be$.$

A$.$ Companies with well diversified portfolios of projects should only be concerned

with the market risk as quantified by the Beta coefficient of the portfolio.

B$.$ One method of incorporate risk into a capital budget is to use a risk$-$adjusted

discount rate.

C$.$ None of the other statements$/$options is correct.

D$.$ It is impossible to reduce diversifiable or unsystematic risk by adding more

projects to a portfolio.

Select only the statement that are true:

A$.$ Approval of projects can be delayed or even cancelled because of the financial

situation in a country.

B$.$ Economic feasibility and efficiency are two economic objectives of the

engineering design process.

C$.$ None of the other statements$/$options is correct.

D$.$ Procurement cost is just one of a number of costs that form part of life cycle cost.