Under what circumstances is the ERR a more appropriate method than an IRR to evaluate a...

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Under what circumstances is the ERR a more appropriate method than an IRR to evaluate a...

Under what circumstances is the ERR a more appropriate method than an IRR to evaluate a project?

A.

When the IRR is much greater than the MARR

B.

When the length of the project is greater than 20 years

C.

When the IRR is much less than the MARR

If the future worth is greater than zero, what does that mean about the project?

A.

The project will not be profitable

B.

The project should be considered for funding

C.

The project should not be considered for funding

If a project's present worth is less than zero, what does that mean about the project's annual worth and future worth?

A.

The annual worth is less than zero, and the future worth is greater than zero

B.

The annual worth and future worth are both greater than zero

C.

The annual worth and future worth are both less than zero

The internal rate of return (IRR) is the rate of return at which what is true?

A.

Present worth = 0

B.

Present worth < 0

C.

Present worth > 0

The simple payback period is a measure of what?

A.

Longevity

B.

Profitability

C.

Liquidity

business accounting

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Answer 1

Answer #1

Under what circumstances is the ERR a more appropriate method than an IRR to evaluate a project?

Answer.

B. When the length of the project is greater than 20 years

If the future worth is greater than zero, what does that mean about the project?

Answer.

B. The project should be considered for funding

If a project's present worth is less than zero, what does that mean about the project's annual worth and future worth?

Answer.

C. The annual worth and future worth are both less than zero

The internal rate of return (IRR) is the rate of return at which what is true?

Answer.

A. Present worth = 0

The simple payback period is a measure of what?

Answer.

A. Longevity

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Answer 2

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