Answer to Question #265667 in Microeconomics for Neil

Question

Q1. Future worth of an investment proposal means

(i) Future value of principal investment

(ii) Salvage value

(iii) Net of future value of investment return

(iv) Effective interest rate

Q2. B : C is calculated to evaluate what ?

(i) A mutually exclusive investment proposal

(ii) An independent investment proposal

(iii) A start up

(iv) A public investment proposal

Q3. Which factor amount formula is applied to compute present worth analysis ?

(i) Equal payment series compound amount

(ii) Equal payment series present worth amount

(iii) Equal payment series capital recovery amount

(iv) Equal payment series sinking fund factor amount

Q4. Which factor formula is applied to calculate future worth ?

(i) Equal payment series compound amount

(ii) Equal payment series present worth amount

(iii) Equal payment series sinking fund factor amount

(iv) None of these

Answer 1

(1)

i. Future value of principal investment.

(2)

i. A mutually exclusive investment proposal.

(3)

ii. Equal payment series present worth amount.

(4)

i. Equal payment series compound amount.