For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided.
If you have difficulty answering the following questions, learn more about this topic by reading our Evaluating Business Investments (Explanation).
Use the following “present value of 1” factors for solving questions that require present value computations:
Accounting Rate Of Return
Internal Rate Of Return
Payback
Accounting Rate Of Return
Internal Rate Of Return
Net Present Value
Accounting Rate Of Return
Internal Rate Of Return
Payback
Had An Internal Rate Of Return That Was Slightly GREATER Than 16%
Had An Internal Rate Of Return That Was Slightly LESS Than 16%
Had A Negative Internal Rate Of Return
($11,000)
$11,000
$100,000
$111,000
2.0 Years
2.1 Years
2.17 Years
3 Years
Has An Internal Rate Of Return That Is GREATER Than 16%
Has An Internal Rate Of Return That Is LESS Than 16%
True
False
True
False
True
False
True
False
True
False
$9,200
$9,300
$9,920
$16,000
$16,600
$18,260
$4,260
$4,620
$4,980
6%
8%
10%
12%
16%
6%
8%
10%
12%
16%
16%
8%
10%
12%
6%
$100,000
$101,000
$110,000
$346,000
$400,000
$446,000
$470,000
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