This online quiz contains 7 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1			When alternatives are ranked on the basis of a present worth analysis, the same ranking will always be obtained with an annual worth or a project rate of return analysis.
			A)	TRUE
			B)	FALSE
2			When an incremental rate of return analysis is conducted, the alternative identified as best by the present worth method will also be identified as best by the incremental ROR analysis.
			A)	TRUE
			B)	FALSE
3			The rate of return on the extra investment is interrupted as the percentage return on the amount invested in year 0 for the larger-initial investment alternative.
			A)	TRUE
			B)	FALSE
4			When more than one alternative can be selected from those available, the alternatives are said to be mutually exclusive.
			A)	TRUE
			B)	FALSE
5			When the cash flow of the alternative with the lower initial investment is subtracted from that with the higher initial investment, a rate of return on the incremental cash flow that equals or exceeds the MARR means the lower-initial investment alternative is the more attractive.
			A)	TRUE
			B)	FALSE
6			When the alternatives under consideration have only disbursements (service alternatives), the do-nothing alternative must be included so that a rate of return analysis can be conducted on the incremental cash flow.
			A)	TRUE
			B)	FALSE
7			For alternatives having only negative cash flows, the only way to compare them using ROR is on an incremental cash flow basis.
			A)	TRUE
			B)	FALSE