economy Q : true or false : 1- With interperiod with no interest, positive cash

Question

economy Q :

true or false :

1- With interperiod with no interest, positive cash flow are moved to beginning of the interest period in which they occur and negative cash flows are moved to the end of the interest period.

2-  Cash overflows are the receipts, revenues, incomes, and saving generated by project and business activity. A plus sign indicates a cash outflows

3- The time value of money explains the change in the amount of money over time for funds that are owned (invested) or owned (borrowed)

4-Government laws that dictate safety, environmental, legal or other aspects are considered economics factors.

5-The minimum attractive are rate of return (MARR) is a reasonable rate of established for the evaluation and selection of alternatives.

6-In equity financing, the corporation borrows from outside sources and repays the principals and interest according to some schedule

7-(F/A , i% , n) factor is always greater than one

8-An effective rate of 8% per year, compounded quarterly has nominal rate less than 8%

9-If the maintenance cost is expected to be high at $1700 the first year, increasing by 11% per year thereafter for 6 years with i = 8% per year, the equivalent present worth equals $10,126   

Explanation / Answer

1. true - the statment is correct

2. false - actually plus sign indicate cash inflow.

3. true - the statment is correct

4. false - government laws are non economic factors.

5. true - the statment is correct

6. false - equity financing the coporation borrow their own source (own funds).

7. true

8. false - nominal rate will be more than 8%

9. true

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