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1-A project's net present value, ignoring income taxes, is affected by: a- the net book value of an asset that is replaced.

1-A project's net present value, ignoring income taxes, is affected by:
          
     a-  the net book value of an asset that is replaced.
  
     b-   the depreciation on an asset that is replaced.
     c-   the depreciation to be taken on assets used directly on the project.
      d-  proceeds from the sale of an asset that is replaced.
2-A company has unlimited funds to invest at its discount rate. The company should invest in all projects having:
          
      a-  an internal rate of return greater than zero.
      b-  a net present value greater than zero.
      c-  a simple rate of return greater than the discount rate.
      d-  a payback period less than the project's estimated life.
3-When the cash flows are the same every period after the initial investment in a project, the payback period is equal to:
          
      a-  the net present value.
      b-  the simple rate of return.
      c-  the factor of the internal rate of return.
      d-  the payback rate of return.
4-The project profitability index and the internal rate of return:
            
     a-   will always result in the same preference ranking for investment projects.
     b-   will sometimes result in different preference rankings for investment projects.
     c-   are less dependable than the payback method in ranking investment projects.
     d-   are less dependable than net present value in ranking investment projects
5-A preference decision:
          
      a-  is concerned with whether a project clears the minimum required rate of return hurdle.
      b-  comes before the screening decision.
      c-  is concerned with determining which of several acceptable alternatives is best.
      d-  All of the above
6-When evaluating a project, the portion of the fixed corporate headquarters expense that would be allocated to the project should be:
          
      a-  included as a cash outflow on an after-tax basis by multiplying the expense by one minus the tax rate.
      b-   included as a cash outflow on an after-tax basis by multiplying the expense by the tax rate.
      c-   included as a cash outflow on a before-tax basis.
      d-  ignored.

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