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t is a reflection of the value place on a product or service.

t is a reflection of the value place on a product or service.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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It is a reflection of the value place on a product or service. utility necessity demand luxury D 21. The capital recovery amount of a project is: uniform annual cost of capital invested interest on invested capital loss in value of the asset percent of the capital recovered
Transcribed Image Text:It is a reflection of the value place on a product or service. utility necessity demand luxury D 21. The capital recovery amount of a project is: uniform annual cost of capital invested interest on invested capital loss in value of the asset percent of the capital recovered
11. The present worth method takes into account the cash flow over the life of the project but not the time value of money. the cash flow over the life of the project and the time value of money. the time value of money but not the cash flow over the life of the project. neither the cash flow over the life of the project nor the time value of money. D 12. Depreciation arises because of: 20. For a project, benefit-cost ratio is equal to one, then IRR will be greater than discount rate IRR will be greater than one IRR will be equal to discount rate IRR will be less than discount rate
Transcribed Image Text:11. The present worth method takes into account the cash flow over the life of the project but not the time value of money. the cash flow over the life of the project and the time value of money. the time value of money but not the cash flow over the life of the project. neither the cash flow over the life of the project nor the time value of money. D 12. Depreciation arises because of: 20. For a project, benefit-cost ratio is equal to one, then IRR will be greater than discount rate IRR will be greater than one IRR will be equal to discount rate IRR will be less than discount rate
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