The machine that has the lowest equivalent annual cost

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Reference no: EM132005891

1. When we compare assets with different lives, we should select the machine that has the lowest equivalent annual cost.

True or False

Explain

2. When the market interest rate exceeds the coupon rate, bonds sell for less than face value to provide enough compensation to investors.

True or False

Explain

3. What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from today?

a. 19.91%

b. 16.67%

c. 15.84%

d. 22.09%

Explain

Reference no: EM132005891

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