27: The interest rate where interest is charged at the same frequency as the quoted interest rate is the: A: nominal interest rate. B: real interest rate. C: compound interest rate. D: effective interest rate. 28: The constant chain of replacement assumption is used when: A: comparing mutually exclusive projects. B: comparing independent projects. C: the life of a project cannot be ascertained with certainty D: comparing mutually exclusive projects with unequal economic lives. 29: Which of the following statements is false? A: The constant chain of replacement model assumes that the incumbent machines and their replacements are absolutely identical. B: The different lives 'problem' in the constant chain of replacement model arises only for independent projects C: Retirement decisions involve evaluating when to abandon a project. D: In replacement decisions the company must decide when its existing assets should be replaced 30: Which of the following statements best describes the role of qualitative factors, such as company image, in the selection of projects? A: They are ignored because they are subjective. C: They must be quantified in some manner before they can be of some use. useful to decision-makers but management is unable to quantify them. D: They are only to be used when deciding between projects with identical net present values