Question

Under what circumstances is the ERR a more appropriate method than an IRR to evaluate a project? O A. When the IRR is much greater than the MARR OB. When the IRR is much less than the MARR O C. 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? O O A. The project should be considered for funding B. The project should not be considered for funding O C. The project will not be profitable If a project's present worth is less than zero, what does that mean about the project's annual worth and future worth? O A. The annual worth and future worth are both greater than zero OB. The annual worth is less than zero, and the future worth is greater than zero O 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? O A Present worth = 0 OB. Present worth > 0 OC. Present worth <0 The simple payback period is a measure of what? O A. Liquidity OB. Profitability OC. Longevity

Answer 1

ANSWERS TO THE FOLLOWING QUESTIONS ARE GIVEN IN BOLD AND CAPITAL LETTERS under what circumstances is the ERR more appropriate method than IRR to evaluate a project ANSWER is C WHEN THE LENGTH OF THE PROJECT IS GREATER THAN 20 YEARS    If the future worth is greater than zero what does it mean about the project? Answer is A THE PROJECT SHOULD BE CONSIDERED FOR FUNDING If the projects present worth is less than zero.what dose that mean about the project annual worth and future worth? Answer is C THE ANNUAL WORTH AND FUTURE WORTH ARE BOTH LESS THAN ZERO. The internal rate of return (IRR) is a rate of return at which what is true? Answer is A PRESENT WORTH =0 The simple payback period is a measure of what? Answer is A LIQUIDITY.