Chapter Review: True or False Quiz

This online quiz contains 10 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		In a present worth comparison of alternatives with unequal lives, the study period to use should be equal to the life of the longer-lived alternative.
			A)	TRUE
			B)	FALSE
2		In a present worth analysis of unequal-life alternatives using the LCM method, it is not correct to use the same cash flows in subsequent life cycles if they are expected to be different than the original ones.
			A)	TRUE
			B)	FALSE
3		The life cycle cost technique represents an attempt to estimate and consider all cash flows through the life of a project or system, not just the construction and M&O costs.
			A)	TRUE
			B)	FALSE
4		Capitalized cost refers to the present value of infinite service.
			A)	TRUE
			B)	FALSE
5		The capitalized cost of a uniform series amount (A) which occurs through an infinite period of time is obtainable by multiplying the A value by the interest rate.
			A)	TRUE
			B)	FALSE
6		In a present worth analysis of unequal-life alternatives, equal service comparison is achieved by comparing the alternatives over their LCM time period.
			A)	TRUE
			B)	FALSE
7		There are a total of 2n-1 mutually exclusive alternatives that can be formulated from n independent projects, if there are no restrictions on the projects or the investment amount.
			A)	TRUE
			B)	FALSE
8		The use of no-return payback period to make alternative selection decisions may result in selection of an alternative different from that selected by a PW or AW analysis.
			A)	TRUE
			B)	FALSE
9		All bonds pay interest in accordance with their coupon rate and payment frequency as established when the bond is initially issued.
			A)	TRUE
			B)	FALSE
10		The present worth of a municipal bond is a function of the bond's face value, its dividend rate, the maturity date, and the interest rate in the market place.
			A)	TRUE
			B)	FALSE