5 15. A company has two segments: 5 a. The company's break-even point will be lower than the sum of the segment break-even points. c. The company's break-even point will be greater than the sum of the segment break-even points. . The Company's break even point will be the same as the sum of the segment break-even points. Answer 16. Consider the following statement: Capital budgeting is used to describe how managers plan significant investments in projects that have long-term implications a. Statement is TRUE. b. Statement is FALSE From Chapter 7 Answer 17. Consider the following statements: 1. If you give up fie. loanone hamburgers today and receive three hamburgers back tomorrow, interest) two For the typical investor, receiving less in the future than what one gives up today would be a good a investment a. I is true; Il is true. b. I is true; Il is false. d. I is false; Il is true. c. I is false; Il is false. From Chapter 7 Answer 18. An investor spends $10,000 to acquire a project. The project has expected annual net cash inflows of $2,500 for each of the next nine years. Under the payback method, the project would have a payback period of: a. Two years b. Two and a half years c. Four years d. Nine years e. Unable to determine without knowing the interest rate involved. From Chapter 7