ECO 1192 Study Guide - Midterm Guide: Pami, Cash Flow, Project 25
Document Summary
The baseline for the acceptance or rejection of a project using the annual equivalent worth (annuity) method is: marr, recovery period less than the industry threshold, sh, 1, none of the above answers. If a 12% rate of interest is compounded quarterly, the annual nominal rate of interest is: 12, 3, 12. 55, none of the above answers. A common period of analysis is required to determine the better of projects a and b when using the annual equivalent method: true, false. If the rate of interest is 16% compounded semi-annually, the annual effective rate of interest is: 16, 16. 4, 8, none of the above answers. A project with an annuity equal to - (negative cash flow) must have a negative internal rate of return: true, false. The rate of return of a project with a sh net present worth must be less than the.
