A. uniform gradient signifies that an income or disbursement changes by the same amount in each interest period.
B. Either an increase or a decrease in the amount of a cash flow is called the gradient.
C. The gradient in the cash flow may be positive or negative.
D. All of these
Correct Answer
All of these
Engineering Economy problems
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1. Which one of the following statements is correct?
Options
A. The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP).
B. The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return.
C. The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)
2. Pick up the correct statement from the following:
Options
A. The ratios which show profitability in relation to sales and those which show profitability in relation to investment, are called profitability ratios.
B. The ratio of gross profit and net sales, is called profitability in relation to sales ratio.
C. The ratio of net profit after taxes to total assests is known as profitability in relation to investment ratio