Question: True or false? If it is true, please justify why it is a true statement. If it is false, please explain exactly why it is

True or false? If it is true, please justify why it is a true statement. If it is false, please explain exactly why it is false.

a. A student plans to visit home in California during the summer break. She can either take an air flight or travel by car. If she chooses to drive, then the flight ticket price she saves is an opportunity cost.

b. The growing perpetuitys present value formula is PV=C1/(R-g). If the growth rate g is higher than the discount rate R, and the cash flow C1 is positive, then this growing perpetuity has a negative present value.

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