Question
Q1. Which of the projects described below would most likely be evaluated at the highest minimum attractive rate of return ? Select One: A routine
Q1. Which of the projects described below would most likely be evaluated at the highest minimum attractive rate of return ?
Select One:
- A routine machine replacement that has been done several times in the past.
- Development of a new type of product, which will require extensive market testing determine whether the product is visible.
- A decision to lease, rather than purchase, a new company automobile
- 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:
- The projects future worth could be greater than zero
- The project adds zero value to the company
- Investors are indifferent between accepting and rejecting the project
- 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:
- Payback period
- Internal rate of return
- Present worth
- Annual worth
- Future worth
- External rate of return
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