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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 55
The return on invested capital (ROIC) method removes multiple ROR values from a cash flow sequence. If the future worth computation in year t is F t 0, the ROIC rate i" is used. The interpretation of F t 0 most closely means:
A) The net balance of project cash flows in year t is negative.
B) The resulting external rate of return will be positive.
C) The net balance of project cash flows is positive in year t.
D) The sequence has nonremovable negative ROR values.
A) The net balance of project cash flows in year t is negative.
B) The resulting external rate of return will be positive.
C) The net balance of project cash flows is positive in year t.
D) The sequence has nonremovable negative ROR values.
Explanation
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Verified
When there are multiple rare of returns ...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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