18. The Average Rate of Return: A) Is not as understandable for management as NPV B) Is based strictly on the value of the Initial Investment C) Considers the financial statement impact of an investment rather than cash flows D) Takes into account the time value of money E) None of the above consequences 19. Which of the following best describes the concept of "sunk costs"? A) B) C) D) E) Costs that will be incurred regardless of what decision is made Costs that have already been incurred and cannot be avoided Costs that are the same between competing alternatives Costs that are relevant to the decision process None of the above 20. The idea that a company will orego some benefit by choosing one option over another is call A) B) C) D) E) Relevant Costs Sunk Costs Opportunity Costs Decision Costs None of the above 21. The "time value" of money implies that money today is worth less than the same amount in the future A) True B) False 22. Which of the following are not relevant to the decision of whether to drop a business segment o not? A) Revenues of the segment B) Variable costs of goods sold of the segment C) Variable operating expenses of the segment D) Fixed overhead applied to the segment E) Band C only