Which of the following is the most appropriate decision rule for *mutually exclusive* projects? -
Ans:✔✔-Accept the project with the *highest NPV* (subject to the condition that its NPV is greater than
0)
*Project Sequencing* is best described as: - Ans:✔✔-An investment in a project today that creates the
opportunity to *invest in other projects in the future*
Which of the following statements about NPV and IRR is *least* accurate?
A. The IRR can be positive even if the NPV is negative
B. When the IRR is equal to the cost of capital, the NPV will be 0
C. The NPV will be positive if the IRR is less than the cost of capital - Ans:✔✔-*C*
Which of the following statements is *least* accurate? The discount payback period:
A. Frequently ignores terminal values
B. Is generally shorter than the regular payback
C. Is the time it takes for the present value of the project's cash inflows to equal the initial cost of the
investment - Ans:✔✔-*B*
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