Question

In: Accounting

Question 11 pts The interest rate at which the present worth and the equivalent uniform annual...

Question 11 pts

The interest rate at which the present worth and the equivalent uniform annual worth are equal to 0 is called the internal rate of return.

True
False

Question 21 pts

To determine the internal rate of return, you can calculate net present worth at varying interests and select the interest rate where NPW = 0.

True
False

Question 31 pts

If the internal rate of return of a project is less than your MARR, then the project is viable.

True
False

Question 41 pts

If the internal rate of return of a project is greater than your MARR, then the project is viable.

True
False

Question 51 pts

Which method uses the net cash flows to determine if a project may have more than one possible solution? (type it down).

12pt

Question 61 pts

Which method uses cumulative cash flow to determine if there is one positive rate of return value for a project? (type it down)

12pt

Question 71 pts

When applied correctly, the Internal Rate of Return method will result in a similar decision as present, future or annual worth.

True
False

Solutions

Expert Solution

PLEASE UNDERSTAND THAT WE ARE REQUIRED TO ANSWER FOUR PARTS OF A QUESTION. AS SUCH, REQUEST TO ASK BALANCE PARTS THROUGH A SEPARATE QUESTION.


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