Question: 16- If mutually exclusive projects with unequal lives can be repeated in the future, the replacement chain method can be used to analyze them over

16- If mutually exclusive projects with unequal lives can be repeated in the future, the replacement chain method can be used to analyze them over an equal life.

Group of answer choices

True

False

17- Consider the following three projects.

Project A has a 2-year life.

Project B has a 3-year life.

Project C has a 4-year life.

If the replacement chain method can be used for them, the least common life is 12 years.

Group of answer choices

True

False

18- A project has a 6-year normal life. However, the project's highest NPV is achieved in 4 years. This means that the project's economic life is 6 years and the physical life is 4 years.

Group of answer choices

True

False

19- The optimal capital budget is defined as the set of projects that maximizes the value of the firm.

Group of answer choices

True

False

20- The discounted payback rule considers the time value of money.

Group of answer choices

True

False

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