When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: O a. Find the present worth over one life cycle of each alternative O b. Always compare them over a time period of equal service O c. the life of the longer-lived alternative the life of the longer- lived alternative O d. Always compare them over a time period of equal service

Q: Describe the process to compare a set of mutually exclusive investments with unequal service lives?

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Q: Can you make me a comparison and contrast of present value and future value?

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Q: For the ORI to be truly optimal, it must maximize present worth over the planning horizon. True or…

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Q: Fair value is determined as: Select one: a. The current entry price. b. The current exit price. c. A…

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Q: Choose between the two proposals below. (i=7% APR) $1,000 NPW A # $800 1 2 $1,000 YR NPW B A=$1,200…

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Q: Examine three aspects of the replacement problem: (1) approaches for comparing defender and…

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Q: For a cost to be relevant to decision-making, it must be:

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Q: Opportunity cost can best be defined as the O a. value of the best alternative foregone when the…

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Q: If the decision is to select the alternative with the maximum profit, then the alternative with the…

A: Present worth is the present value of all future cashflows discounted at given discount rate

Q: Should the analyses show the sensitivity of the discounted net present value and other outcomes?

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Q: What is annual worth method, future worth method, and present worth method in comparing alternative,…

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Q: Pick ONE of the two options... Option 1: Diminishing marginal utility holds that the additional…

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Q: In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being…

A: Salvage value is the book value of an asset after all the depreciation is completed.

Q: A sunk cost can be described as which of the following?     A historical cost     Cannot be…

A: Sunk Cost: The sunk cost is the historical cost that already has been incurred previously, which is…

Q: You are performing an ROR analysis and find that alternative Y includes the purchase of equipment…

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Q: Assume benefit is unchanged, how to manipulate  the cost to have positive NPV (net present value)

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Q: Compute for the Modified Payback Period of opportunity #1. Compute for the Modified Payback Period…

A:

Q: Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable…

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Q: a present value is converted to a future value through compounding, explain this to me.

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Q: The value of the asset at the end of the useful life is called O a. Book value O b. Useful life O c.…

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Q: Compensation can be benefits. Select one: O a. Both a and b O b. None of the other points O c.…

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Q: Each of the following are true of relevant information except O different alternatives can be…

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Q: Relative valuation has several advantages relative to other valuation techniques.Which of the…

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Q: The benefit lost when choosing one option precludes receiving the benefits from an alternative…

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Q: You have two investments that have positive net present values and are financially feasible. Your…

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Q: Payment can be made in the form of funds, assets, or __________. Multiple Choice   services…

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Q: Explain an example how to determine the future value.

A:

Q: Illustrate the marginal analysis to determine the optimal time for replacing the defender with the…

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Q: lternatives’ useful lives are different, B/C ratio analysis should preferably be based on: Select

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Q: List the advantages and disadvantages of the payback method.

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Q: When performing benefit-cost analysis, economists usually discount future benefits and costs. Why?…

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Q: Describe the procedure used for Incremental Analysis for Comparing Mutually Exclusive Alternatives?

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Q: What happens to a future value is you increased the rate, r? What happens to a present value?

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Q: Which option does NOT form part of measurement bases in terms of IAS1? Select one: O a. Prime cost O…

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Q: MIRR is considered to be a _______ return since it assumes reinvestment at _______. IRR is…

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Q: Define the term Equivalent worth-calculation?

A: To define the term Equivalence worth calculation.