| Question |
(a) 0 = ?? 10,000 + 3000(P/A, ??i*, 3) + 1000(P/F, ??i*, 3) (b) 0 = ?? 40,000(A/P, ??i*, 3) ?? 15,000 + 5000(A/F, ??i*, 3) (c) 0 = ?? 50,000(A/P, ??i*, 3) ?? 12,000 + 6000(A/F, ??i*, 3) (d) 0 = ?? 10,000 ?? 3000(P/A, ??i*, 3) + 1000(P/F, ??i*, 3) 2. For the four independent projects shown, the one or ones to select using a of 14% per year are: Rate of Return, Project % per Year A ……….. 14 B ……….. 12 C ……….. 15 D ……….. 10 (a) Only C (b) Only A and C (c) Only A (d) Can??t tell; need to conduct incremental Analysis Problems 3 through 5 are based on the following information. Five alternatives are being evaluated by the incremental rate of return method. 3. If the projects are mutually exclusive and the minimum attractive rate of return is 14% per year, the best alternative is: (a) B (b) C (c) D (d) E 4. If the projects are mutually exclusive and the is 20% per year, the best alternative is: (a) B (b) C (c) D (d) E 5. If the projects are independent, instead of mutually exclusive, the one or ones to select at an of 18% per year are: (a) B and C (b) B, D, and E (c) D and E (d) B, C, andE |
