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Analysis of mutually exclusive alternatives

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All true or false:

-when performing a proper analysis of mutually exclusive alternatives, the best alternative must yield the largest rate of return.

-for compounding more often than once per year, and positive nominal interest, an effective interest rate will ALWAYS be greater than or equal to the corresponding nominal interest rate.

-if a bond is purchased for the face value, and the bond is kept to maturity, then the yieldfor owning the bond is the same as the bond rate

-when selecting from among MEAs, the AW method will always yield a lower IRR than the PW method

-the capital recovery cost increases as annual operating costs increase

-bonds can be bought and sold much like stocks

-when evaluating cost alternatives, "do nothing" is always an alternative

-the simple payback method is most useful as a liquidity measure

PLEASE HELP ME ASAP

Reference no: EM131063991

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