Q3. If the calculated net present value (NPV) is negative, which of the following must be TRUE? The discount rate used is: A) greater than the internal rate of return (IRR). B) less than the internal rate of return (IRR). C) equal to the internal rate of return (IRR).
Q2. When using net present value (NPV) profiles: A) the NPV profile's intersection with the vertical y-axis identifies the project's internal rate of return. B) one should accept all mutually exclusive projects with positive NPVs. C) one should accept all independent projects with positive NPVs.
Q3. The NPV profile is a graphical representation of the change in net present value relative to a change in the: A) prime rate. B) discount rate. C) internal rate of return.
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