quiz2-key 2005 - CHE 4253 Quiz 2 Instructor Dimitrios V...

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CHE 4253 - Quiz 2 Instructor: Dimitrios V. Papavassiliou October 6, 2005 Name:………………………. OU ID or SSN:……………………… Answer all questions and show your calculations, if any are necessary. 1. (10 points) Indicate whether the following statements are True or False. (a) It is to our benefit to put our money in a bank that compounds interest monthly rather than every quarter. TRUE FALSE Yes, because our interest starts earning interest sooner. (b) The Discounted Cash Flow Rate of Return (also known as profitability index) is larger than the acceptable rate of return when the Net Present Worth is positive. TRUE FALSE Yes, because positive NPW means profitable investment, which in turn means a profitability index larger than the acceptable rate of return. (c) The Environmental Protection Agency (EPA) is responsible for regulating safety in the workplace. TRUE FALSE OSHA is responsible for the workplace, EPA is responsible for the environment.
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