What would you recommend if the benefit / cost ratio is >1: Select one: a. The project must be accepted. b. Benefit / cost ratio cannot be >1 c. The project must be rejected. d. Benefit / cost ratio always =1

1. State the criterion for accepting or rejecting independent projects under each of the following methods. - Profitability index  - Discounted payback period  - Accounting rate of return  - Net present value  - Payback period  - Internal rate of return

true or false 14.    Marginal analysis means that projects must be implemented if their revenues are higher than their expenses.

1- Please name the goals of models. 2- Please define risky project. 3- Please name two Criteria for evalu...ng pject decisions. 4- Please define the value of information about projects. 5- Are you agree with the phrase(sentence): "The indifference (exchange) risk - retur curve slop of a risk aversion has a negative slop."? explain why? (4)

In calculating the Net Present Value, the project would be acceptable if the outcome was: Group of answer choices Positive Positive or Zero Zero Negative

In incremental analysis, only relevant costs are considered when making a decision among alternatives. Explain what relevant costs are. Would these include only variable costs? Explain.

Specs Co is a manufacturer of spectacles and contact lenses. It is evaluating four projects for investment purposes. The projects are being evaluated based on their profitability, which is dependent on market conditions. Market conditions are forecast to be either good, average or poor and the probability of those market conditions occurring are 50%, 30% and 20% respectively. Specs Co has prepared the following profit table: Market conditions Good Average Poor Project 1 $160,000 $80,000 $10,000 Project 1 Project 2 Project 3 Project 4 Project 2 Project 4 $150,000 $130,000 $100,000 $70,000 $20,000 ($20,000) ($30,000) The profitability of the projects has been calculated after deducting directly attributable fixed costs as follows: Fixed costs $500,000 $400,000 $250,000 $200,000 Project 3 $140,000 $60,000 Specs Co has also recently employed a trainee management accountant who has been asking the finance director about how expected values can be used by an organisation.

Two investment projects are under analysis and, due to budget constraints, only one of them can be selected. The investor should select the project: a. Based on absolute metric of value b. With higher internal rate of returnc. With lower discounted payback period

When choosing between two projects of different scales, which of the following methodologies is best employed? a. Probability index to rank projects b. Equivalent annuities method c. Replacement chain method d. IRR method

2) The expected return of Project Y is at least equal to the expected return of Project X, and the variance of Y is less than that of X. What would you do? A) Prefer Project Y   B) Accept both projects C) Prefer Project X   D) Reject both projects.