Forest Economics Quiz

Select the wrong statement/s

• Certainty exist when there is only one outcome for each alternative

• Certainty exists when the outcome for each alternative is known

• Uncertainty refers to events with statistical probability

• All of the above

Which one of the following is a source of uncertainty?

• Fire

• Technology factors

• Pest and disease

• All of the above

Pessimist approach minimizes the chance of maximum loss

• True

• False

Select the correct statement

• IRR is the interest rate that makes NPV= 0

• IRR is the rate of interest rate at which present value of costs is equal to present value of benefits

• If IRR > alternative rate of return - the project is rejected

• A &B

• All of the above

Which one of the following is not a criteria in decision making?

• NPV

• B/C

• IRR

• Sensitivity analysis