1) Net present worth analysis requires equal analysis periods for different alternatives? a. True b. False 2) For a project with initial cost of $10,000 and yearly revenue of $2000 for 10 years, the time to recover the investment will: a. Will be the same for payback and FW but longer for NPW b. Will be shorter if using payback, but the same for NPW and FW analysis c. Will be longer if using payback, but the same for NPW and FW analysis d. Be the same if using payback, NPW and FW analysis 3) Payback periods can be used as a screening tool for liquidity a. True b. False 4) The MARR is the minimum acceptable rate of return and is usually 0 a. True b. False 5) A service project has a EUAC = 0 . You should a. Be indifferent b. Accept the project c. Reject the project 6) When performing B/C analysis, you should always choose the project with the highest B/C value. a. True b. False 7) Considering the following cash flow, how many i* are possible? Period Cash flow 0 -500 1 100 2 -50 3 250 a. Project has 3 i*s b. Project could have 0,1,2 or 3 i*s c. Project could have 0,1 or 2 i*s d. Project has 1 i* 8) Whether Present Value (PV) or equivalent uniform annual cost (EUAC) is used, the decision supported by the analysis will be the same. a. True b. False 9) Remaining Service Life (RSL) value exists only if the alternative will continue in operation after the end of the analysis period, whereas salvage value requires termination. a. True b. False 10) Life-cycle cost analysis (LCCA) uses a common period of time called "Analysis Period" to assess cost differences between alternatives so that the results can be fairly compared. a. True b. False