Which of the following is true regarding the evaluation of projects

1.       (TCO 4) Which of the following is true regarding the evaluation of projects?

 

a.       Sunk costs should be included

b.      Erosion effects should not be considered

c.       Financing costs need to be included

d.      Opportunity costs are relevant

2.       (TCO4) There are several disadvantages to the payback method, among them:

a.       Payback ignores the time value of money

b.      Payback can be used in conjunction with time adjusted methods of evaluation.

c.       Payback is easy to use and to understand

d.      None of the above is a disadvantage

Leave a Reply