ACC 203 Cpt 12 True False

1.      The simple rate of return is the same as the internal rate of return.

True

False

 

2.      If two projects require the same amount of investment, then the preference ranking computed using either the profitability index or the net present value would be the same.

TrueFalse 

3.      Preference decisions attempt to determine which of many alternative investment projects would be the best for the company to accept.

TrueFalse 

4.      A very useful guide for making investment decisions is: The shorter payback period, the more profitable the project.

TrueFalse 

5.      The cost of capital involves blending of costs of all sources of capital funds, both debt and equity

TrueFalse