1. How do you account for differences in service life for alternative investments? Give examples to support your arguments.
2. Give an example for a must-choose-one type of alternative.
3. List three ways to calculate the incremental DCFRR on investments.
4. Give an example of un-symmetric complementary set of alternatives. Are un-symmetric complementary alternatives the same as must-choose-one type of alternatives?
5. What kind of cash flows may lead to multiple DCFRR?
6. Sketch the cash flow position for a profitable project where continuous cash flows are constant. Identify the various elements of cash flow on the graph.
7. Write out the formula for following expressions;
a) CF (for the final year in the project)
b) NPW
8. What is the difference between Cash expenses and expenses?