The following are all True and False Questions:
1. Book Value represents the remaining underpreciated investment on the books after the depreciation charges to date have been subtracted
2. For the same interest rate, compounding interest does not always yield a larger future worth value than a simple interest rate
3. For any project, if its present worth is negative, the project will be rejected
4. The capatalized cost of a finite-life alternative can be obtained by calculating its annual worth over one life cycle and then multiplying by the interest rate
5. The depreciation amount is not directly included in CFBT (Cash Flow Before Tax), but depreciation is directly invlolved in the taxable calculation
6. Using incremental analysis of alternatives, the alternatice with the highest B/C ratio is selected.
7. Plotting PW vs i can be used to determine the IRR for a given project.
8. In conducting an incremental analysis, at any round, two alternatives can be compared and the alternative with the highest internal rate of return can be selected for comparison in the next round.
The following are all True and False Questions:
1. Book Value represents the remaining underpreciated investment on the books after the depreciation charges to date have been subtracted
2. For the same interest rate, compounding interest does not always yield a larger future worth value than a simple interest rate
3. For any project, if its present worth is negative, the project will be rejected
4. The capatalized cost of a finite-life alternative can be obtained by calculating its annual worth over one life cycle and then multiplying by the interest rate
5. The depreciation amount is not directly included in CFBT (Cash Flow Before Tax), but depreciation is directly invlolved in the taxable calculation
6. Using incremental analysis of alternatives, the alternatice with the highest B/C ratio is selected.
7. Plotting PW vs i can be used to determine the IRR for a given project.
8. In conducting an incremental analysis, at any round, two alternatives can be compared and the alternative with the highest internal rate of return can be selected for comparison in the next round.
