1.) A project has the following cash flows: C0 = 100,000; C1 = 50,000; C2 = 150,000; C3 = 100,000. If the discount rate changes from 12 percent to 15 percent, what is the CHANGE in the NPV of the project (approximately)?

A.) 14,240 increase

B.) 12,750 decrease

C.) 14,240 decrease

D.) 12,750 increase

2.) Discounted cash-flow (DCF) analysis generally

I) assumes that firms hold assets passively when it invests in a project;

II) considers opportunities to expand a project if the project is successful;

III) considers opportunities to abandon a project if the project is a failure

A.) II and III only

B.) II only

C.) I, II, and III

D.) I only