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NEW QUESTION: 1
Given:

What is the result?
A. Compilation fails.
B. An exception is thrown at runtime.
C. 10 20 30 40
D. 0 0 30 40
Answer: A

NEW QUESTION: 2
The method that recognizes the time value of money by discounting the after-tax cash flows over the life
of a project, using the company's minimum desired rate of return is the:
A. Internal rate of return method.
B. Accounting rate of return method.
C. Payback method.
D. Net present value method.
Answer: D
Explanation:
Choice "b" is correct. The net present value method recognizes the time value of money and discounts
cash flows over the life of a project, using the minimum desired (hurdle) rate.
Choice "a" is incorrect. The accounting rate of return is the accrual accounting increase compared to the
initial investment.
Choice "c" is incorrect. IRR is similar to NPV, but does not assume a desired rate of return. The rate is
calculated that produces a NPV of zero.
Choice "d" is incorrect. Payback method does not recognize the time value of money.

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