Run the appraisal gates

Exercise and reference answers

Questions

1. Correct

   4 years

   Choices

   1. 4 years
   2. 3 years
   3. 5 years

2. Correct

   6,000

   Choices

   1. 4,000
   2. 6,000
   3. 2,000

3. Correct

   11,000

   Choices

   1. 9,000
   2. 13,000
   3. 11,000

4. Correct

   14%

   Choices

   1. 14%
   2. 10%
   3. 18%

5. Correct

   Above one

   Choices

   1. Below one
   2. Above one
   3. Exactly nil

6. Correct

   25,000

   Choices

   1. 16,000
   2. 20,000
   3. 25,000

Instructions

Pick the payback year, then the crossing rate, then the ratio rule.

Explanation