Consider the following two investment alternatives:Suppose that your � – McqOptions

MCQOPTIONS

1.	Consider the following two investment alternatives:Suppose that your ﬁrm needs either machine for only 2 years. The net proceeds from the sale of machine B are estimated to be $200. What should be the required net proceeds from the sale of machine A so that both machines could be considered economically indifferent at an interestrate of 10%?
A.	850
B.	700
C.	750
D.	800
Answer» D. 800

Discussion

No Comment Found

Related MCQs

The method of research that gathers data about perceptions, feelings, opinions through interviews and questionnaires in their actual work setting is known as
A method of helping is to understand management and organisational behaviour is to look at that has been done before
De nable groups of people who have an economic and/or social interest in the organisation are called
Governance policies, rules, as well as authority structures apply to which key resource element of the organisation?
Revitalization involves the strategies, resources, technology, and skills of the organisation.
Satisfaction is de ned as positive feelings people have about an organisation whether as a/an
Economic equivalence refers to the fact that a cash ow-whether a single payment or a series of payments-can be converted to an equivalent cash ow at any point in time.
A fund accumulated by periodic deposits and reserved exclusively for a speci c purpose, such as retirement of a debt
A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some speci c purpose is sinking fund
The annual equivalent worth (AE) criterion provides a basis for measuring investment worth by determining equal payments on an annual basis.