The time adjusted rate of return on this project is a

2

The time-adjusted rate of return on this project is:
8. When comparing the total-cost approach to the incremental-cost approach of determining investment
acceptability, which of the following statements is FALSE?
9. When using the total-cost approach to determine the acceptability of an investment, which of the
following will equal zero if the investment yields the internal rate of return.
10. When a project will not yield revenues, the decision to accept or reject the project should probably
be based on:
a. a preference decision
b. a least-cost decision
c. a postaudit
d. a screening decision
e. the incremental-cost approach
11. Machine Investment Annual Cash Flow
A P45,000 P4,500
B 50,000 6,200
C 25,000 3,800
D 89,000 6,000
Which machine has the fastest payback period?