Reference no: EM132706497

Problem (1.) Which of the following capital investment analysis methods ranks proposals based on the cash flows over their complete useful life, even if the project lives are not the same?

a.The internal rate of return method
b.The cash payback method
c.The average rate of return method
d.The net present value method

Problem (2.) Which of the following capital investment evaluation methods uses present values?

a.The absolute percentage growth method
b.The cash payback method
c.The internal rate of return method
d.The average rate of return method

Problem (3.) When the net present value is positive, the present value index will be:

a.negative.
b.greater than one.
c.less than one.
d.equal to zero.