Q1. Which of the projects described below would most likely be evaluated at the highest minimum attractive rate of return ?

Select One:

1. A routine machine replacement that has been done several times in the past.
2. Development of a new type of product, which will require extensive market testing determine whether the product is visible.
3. A decision to lease, rather than purchase, a new company automobile

4. Hiring a part-time worker for the companys mail room to reduce the workload of the full-time mail room operator during peak times

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Q2. The present worth of a stand-alone project is equal to zero, then all of the below are correct statements except:

Select One:

1. The projects future worth could be greater than zero
2. The project adds zero value to the company
3. Investors are indifferent between accepting and rejecting the project

4. The projects internal rate of return is equal to minimum attractive rate of return

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Q3. Which of the measures below is a direct measure of the projects contribution to the value of the company in the market ?

Select one:

1. Payback period
2. Internal rate of return
3. Present worth
4. Annual worth
5. Future worth
6. External rate of return