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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Rate of Return Analysis: Single Alternative

Matching Quiz

Select the correct answers on the left to fill in the blanks on the right. There are more answers than questions, therefore, some of the items on the right will remain unused. When you have completed the quiz, click the SUBMIT button at the bottom.


1				For an investment, the interest rate is the rate of interest earned on the ____________.


2				When the algebraic signs on the net cash flows change more than once, the cash flow sequence is called ____________.


3				When there is more than one sign change in the net cash flows, multiple i* values are possible in the range of _______________.


3				The total number or real i* values is always ______________ the number of sign changes in the cumulative cash flow sequence.


3				The composite rate of return assumes that net positive cash flows not immediately needed by the project are reinvested at the __________.


4				Norstrom's criterion uses the ________to determine if a unique rate may exist.


5				An interest rate calculated on the original amount each period is _________ than one based on the unrecovered balance.

Answer choices for questions 1 through 5

A)	i* rate
B)	Reinvestment rate
C)	Cash flow series
D)	MARR
E)	Equal to or less than
F)	Higher
G)	Zero to one
H)	Non-conventional
I)	-100% to plus infinity
J)	Unrecovered balance
K)	Principal amount
L)	Cumulative cash flows
M)	Lower

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