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True or False

Economics Dec 13, 2020

True or False.

1) _ A company's minimum attractive rate of return is generally equal to the rate of return that the company would receive if it invested its money someplace else with similar risk.

2)_ Cash prevails over all other forms of equity is one of the Fundamental Principles of Engineering Economics

3)_ The two primary factors in Engineering Economics is "time" and "money".

Expert Solution

1.) The given statement is true.

A company's minimum attractive rate of return is generally equal to the rate of return that the company would receive if it invested its money someplace else with similar risk.

2.) The given statement is false.

Cash prevails over all other forms of equity is not considered as one of the Fundamental Principles of Engineering Economics.

3.) The given statement is false.

The two primary factors in Engineering Economics are not "time" and "money".

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