Monday, November 11, 2019

Kristi wants to start training her most junior assistant, Amy, in the art of project analysis


Kristi wants to start training her most junior assistant, Amy, in the art of project analysis. Amy has just started college and has no experience or background in business finance. To get her started, Kristi is going to assign the responsibility for all projects that have initial costs less than $1,000 to Amy to analyze. Which method is Kristi most apt to ask Amy to use in making her initial decisions? 
 
A. 
discounted payback

B. 
profitability index

C. 
internal rate of return

D. 
payback

E. 
average accounting return
Refer to section 9.7


52.
Which two methods of project analysis were the most widely used by CEO's as of 1999? 
 
A. 
net present value and payback

B. 
internal rate of return and payback

C. 
net present value and average accounting return

D. 
internal rate of return and net present value

E. 
payback and average accounting return
Refer to section 9.7


53.
Which two methods of project analysis are the most biased towards short-term projects? 
 
A. 
net present value and internal rate of return

B. 
internal rate of return and profitability index

C. 
payback and discounted payback

D. 
net present value and discounted payback

E. 
discounted payback and profitability index
Refer to section 9.7

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