Question 10

Which statement is incorrect regarding the use of factors?

a.

A are equal amounts of money.

b.

P is at the same year of the first A.

c.

A should be consecutive amounts

d.

F is at the same year of the last A.

Clear my choice

Question 11

If we calculate B/C; if it is >1.0, then:

Select one:

a.

lower cost alternative is selected.

b.

we eliminate the challenger.

c.

higher cost alternative is selected.

d.

we select the defender to compete with the next higher cost alternative.

Clear my choice

Question 12

One of the common depreciation terms is B which is:

Select one:

a.

Beneficiary value

b.

Benefit

c.

Tangible projects.

d.

First cost of property

Clear my

Questions 13

Personal Properties of a company are:

Select one:

a.

Capital investment.

b.

keys

c.

Human resources.

d.

vehicles and equipment

Question 14 An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR is 15% per year, the following equation can be used to solve for i* is: 0 = -20,000(P/A,i*,3) + 7000+ 8000(A/F,i*,3)

Select one:

True

False

Question 15

When independent projects are evaluated, no incremental analysis is necessary between projects. Each project is evaluated separately from others, and only one can be selected. Therefore, the only comparison is with the do-nothing alternative for each project. The project ROR can be used to accept or reject each one.

Select one:

a.

True

b.

False

Clear my choice