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Unformatted text preview: BUSl 170 Quiz 3 C\\S Dr. Stoyu I. Ivanov Name (Prir Date r',i?\t..1 Time I l; -: SHOW WORK TO GET FULL CREDIT, 50 pts total 4 points-1. A project's opportunity cost of capital is: (4. the forgone return from investing in the project. E. flr. return earned by investing in the project. C. equal to the average return on all company projects. D. designed to be less than the project's IRR. 4 points 2. The decision rule for net present value is to: A. accept all projects with cash inflows exceeding initial cost. ,B. reject all projects with rates of retum exceeding the opporlunity cost of capital. @) accept all projects with positive net present values. D. reject all projects lasting longer than 10 years. 4 points 3. Which of the following changes will increase the NPV of a project? A. A decrease in the discount rate B. A decrease in the size of the cash inflows 9.'Ar increase in the initial cost of the project D-. A decrease in the number of cash inflows-a poirrt, 4. if the opportunity cost of capital for...
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