Answer to Question #265668 in Microeconomics for Jack

Question

Q1. Which factor formula is applied to calculate annual equivalent worth ?

(i) Equal payment series present worth amount

(ii) Equal payment series compound amount

(iii) Equal payment series capital recovery amount

(iv) None of these

Q2. Which formula is applied to calculate internal rate of return ?

(i) Present worth analysis

(ii) Future worth analysis

(iii) Annual equivalent worth analysis

(iv) None of these

Q3. What is the difference between value and worth ?

(i) value is present and worth is intrinsic amount

(ii) value is the present amount and worth is value with impact of interest rate

Q4. A public investment proposal is accepted when

(i) B : C ratio is = 0

(ii) B : C ratio is > 0

(iii) B : C ratio is < 0

(iv) None of these

Q5. An investment proposal is accepted when

(i) Present worth = 0

(ii) Present worth > 0

(iii) Present worth < 0

(iv) None of these

Q6. An investment proposal is accepted when

(i) Internal rate of return (IRR) >= Minimum acceptable rate of return (MARR)

(ii) Present worth > 0

(iii) Future worth < 0

(iv) None of these

Answer 1

(1)

ii. Equal payment series compound amount.

(2)

i. Present worth analysis.

(3)

i. Value is present and worth is intrinsic amount.

(4)

ii. B:C ratio is >0

(5)

ii. Present worth >0

(6)

ii. Present worth>0