Homework questions, any answers will help. The units for decision making evaluat
ID: 2750078 • Letter: H
Question
Homework questions, any answers will help.
The units for decision making evaluation are in equivalences a)Time b)percent C)money d)year e)pay back 21) the time of money methods applies formulas to additional cash flow produced by the investment a)simple interest b)compounds interest c)Rate of return d)pay Back 22)equipment's A will preferred over equipment B if the pay back period for equipment A is compared to that of equipment's B a)shorter b)the Same C)Longer d) A orB e)B or C 23 The pay periods methods uses the time value of money concepts A)True B)False 24 (A/p 20% 15) is equal to a)406755 b)2139 c)1315 d)7.6061 e)4.1770 25) to convert Future funds to present to present value use a)F/Pi% b)F/A,i%n C)P/F,I%n d)A/F,I%,n e)A/P,I%n 26)Annual rate of return does not consider investments value a)True b)False NFWis NPW a)Cannot determine b)less than C)the same as d)Greater than 28) Net Equivalent annual worth is a Yearly Sum a)true b)False 29) A value of 50000 c)3507 d)2025 E)819 30)The NPW of 5 years of revenue at 10% is the interest is equivalent to in years 1-5 a)501 b)50000 c)3507 d)2025 e)819 30)The new of 5years of revenue at 10% is the Sum of the yearly values a)less than b)Greater than c)Equal toExplanation / Answer
20. Decision making is done after finding time value of money equivalents, which are pay back equivalencies. So option E is correct
21. Time value of money method applies pay back formulas. Option D
22. Payback period is by when we are getting our investment. So the lesser the better. So option A is correct
23. Payback period don't use time value of money concept. So option B is correct.
Discounted payback period uses time value of money concept
24. =PV(20%,15,1,0,0) = 4.6755. Option A is correct
26. It considers initial investment. It cannot be calculated without knowing the initial investment. Option A is correct
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