1. A firm is considering three investment proposals (A, B, & C), given his budget $4.5M....

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1. A firm is considering three investment proposals (A, B, & C), given his budget $4.5M. Proposal A requires $1M investment, B requires $2.5M, and C requires $3M. Also known is that A and C are mutually exclusive to each other. The "do nothing" alternative is not feasible. How many mutually exclusive investment alternatives are there? a. 2 b. 3 c. 4 d. 5 2. Which of the following cash flow profile may give you a positive future worth? a. A₁ = $500, A2 = $500, A3-$500, A4 = $500 $200, A3 = $150,A4 = $300, A5 = $400 C. Ao $1,400, A3 = $700, A4 = $700 b. A₁ = $100, A₂ = = d. A₁ = $400, A₂ = $350, A₁ = -$250, A5 = $350 3. Between investment alternatives A and B, we choose A since its present worth is $100,000 higher than that of B. This decision is based on a. Time value of money b. Weighted factor comparison method C. Four Discounted Cash Flow Rules d. Ten Principles of Engineering Economic Analysis 4. Tom has been offered the choice of receiving $4,000 today or an agreed-upon amount in 2 year. While negotiating the future amount, Tom notes that he would be willing to take no less than $5,760 if he has to wait two years. What is his TVOM in percent? a. 10% b. 15% c. 20% d. 30% 1. A firm is considering three investment proposals (A, B, & C), given his budget $4.5M. Proposal A requires $1M investment, B requires $2.5M, and C requires $3M. Also known is that A and C are mutually exclusive to each other. The "do nothing" alternative is not feasible. How many mutually exclusive investment alternatives are there? a. 2 b. 3 c. 4 d. 5 2. Which of the following cash flow profile may give you a positive future worth? a. A₁ = $500, A2 = $500, A3-$500, A4 = $500 $200, A3 = $150,A4 = $300, A5 = $400 C. Ao $1,400, A3 = $700, A4 = $700 b. A₁ = $100, A₂ = = d. A₁ = $400, A₂ = $350, A₁ = -$250, A5 = $350 3. Between investment alternatives A and B, we choose A since its present worth is $100,000 higher than that of B. This decision is based on a. Time value of money b. Weighted factor comparison method C. Four Discounted Cash Flow Rules d. Ten Principles of Engineering Economic Analysis 4. Tom has been offered the choice of receiving $4,000 today or an agreed-upon amount in 2 year. While negotiating the future amount, Tom notes that he would be willing to take no less than $5,760 if he has to wait two years. What is his TVOM in percent? a. 10% b. 15% c. 20% d. 30%

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ANSWER The mutually exclusive investment alternatives are those that cannot be pursued simultan... View the full answer