Machine-translated by Google. Questions are authored in English.
Top

Discussion

Consider the following statements about worth analysis.

1. Annual worth avoids the need for a common study period   2. Present and annual worth can give opposite decisions   3. Sunk costs are irrelevant to a current decision

  • A.1, 2 and 3 are all correct statements about worth analysis
  • B.2 and 3 only are correct
  • C.1 and 2 only are correct
  • D.1 and 3 only are correct

Answer: D

Correct answer: 1 and 3 only are correct

Statements 1 and 3 are correct: annual worth is already per period, and sunk costs cannot bear on a present decision. Statement 2 is false, since \( AW = PW \times (A/P, i, n) \) and the factor is always positive - the two measures cannot disagree about a sign.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.