If project A has present worth of -$27 000 and project B has present worth of -$26 000, then
A) project B should be accepted on the basis of maximum benefits
B) project A should be accepted because it has larger absolute value.
C) project B should be accepted on the basis of minimum costs.
D) the situation requires additional assessment since some of the costs or benefits might not be considered.
E) the decision cannot be made because of uncertainty.
Correct Answer:
Verified
Q1: For the purpose of comparison, what alternative
Q3: The annual worth of a project is
Q4: A project requires $10 000 as initial
Q5: What is the basis for decision-making using
Q6: Two projects are mutually exclusive if
A)the expected
Q7: What is the payback period?
A)a period of
Q8: The minimum acceptable rate of return (MARR)is
A)an
Q9: What is the present worth of an
Q10: A project is marginally acceptable if
A)it earns
Q11: A project requires $10 000 as initial
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