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assignment 8 - 1 StudentResponse Value CorrectAnswer...

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1.   Which of the following statements is correct for a project with a positive NPV?    Student Response Value Correct Answer Feedback A. IRR exceeds the cost  of capital. 100%       B. Accepting the project  has an indeterminate  effect on  shareholders.      C.  The discount rate  exceeds the cost of  capital.      D.  The profitability index  equals one.      Score: 1/1    2.   What is the NPV of a project that costs $100,000 and returns $50,000 annually for three years if the opportunity  cost of capital is 14%?    Score:
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0/1    3.   The decision rule for net present value is to:    Score: 1/1    4.   What is the maximum that should be invested in a project at time zero if the inflows are estimated at $50,000  annually for three years, and the cost of capital is 9%?    Score: 1/1    5.
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