For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided.
If you have difficulty answering the following questions, learn more about this topic by reading our Evaluating Business Investments (Explanation).
Use the following “present value of 1” factors for solving questions that require present value computations:
Accounting Rate Of Return
Internal Rate Of Return
Payback
Accounting Rate Of Return
Internal Rate Of Return
Net Present Value
Accounting Rate Of Return
Internal Rate Of Return
Payback
Had An Internal Rate Of Return That Was Slightly GREATER Than 16%
Had An Internal Rate Of Return That Was Slightly LESS Than 16%
Had A Negative Internal Rate Of Return
($11,000)
$11,000
$100,000
$111,000
2.0 Years
2.1 Years
2.17 Years
3 Years
Has An Internal Rate Of Return That Is GREATER Than 16%
Has An Internal Rate Of Return That Is LESS Than 16%
True
False
True
False
True
False
True
False
True
False
$9,200
$9,300
$9,920
$16,000
$16,600
$18,260
$4,260
$4,620
$4,980
6%
8%
10%
12%
16%
6%
8%
10%
12%
16%
16%
8%
10%
12%
6%
$100,000
$101,000
$110,000
$346,000
$400,000
$446,000
$470,000
Want more practice questions?
Receive instant access to our graded Quick
Tests (more than 1,800 unique test questions) when you join
AccountingCoach PRO.
Featured Review
"I am currently managing a family business in Thailand, which mainly concerns the import and export of frozen seafood. I became a PRO user after going through the first few chapters and finding the material to be comprehensive, answering all the questions I had as I read along and even the ones I didn't know I had. I like how detailed the material is, while still being digestible and not too time consuming. The examples later on encourage me to think about each problem as an accountant would based on what I've learnt. Since reading the first 10 chapters, I now already have an easier time making sense of financial statements issued within the company, to the point where I was able to help my accountant make decisions about how we should manage certain situations regarding intricacies of the factory. I wanted to thank AccountingCoach and the team responsible for putting this great content together as it has had a very positive impact on my life and career, and helped me make decisions with more competency and confidence." - Shahzil Y.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviewsWe now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: