Reference no: EM132809421
Problem 1: How should the following projects be listed in order of increasing risk?
A. New venture, replacement, expansion.
B. Replacement, new venture, expansion.
C. Replacement, expansion, new venture.
D. Expansion, replacement, new venture.
Problem 2: A project that when accepted or rejected will not affect the cash flows of another project.
a. Independent projects
b. Mutually exclusive pojects
c. Dependent projects
D. Both b and c
Problem 3: When disposing of an old asset and replacing it with a new one, tax effect on
A. gain on sale of the old asset reduces the basis of the new asset
B. gain on sale of the old asset increases the basis of the new asset
C. loss on sale of the old asset reduces the basis of the new asset
D. B and C