1.) If a project has a profitability index of 1, which of the following statements is not true

Select one:

A.) The present value of the expected future cash inflows of the project equals the net initial investment

B.) The NPV of the project will equal 1

C.) The IRR of the project will equal the cost of capital

D.) All statements are true

2.) When the NINV for a project is estimated an outlay that has already been made that cannot be recovered if the project is rejected is known as a(n):______

A.) Sunk cost

B.) Cash benefit

C.) Cash inflow

D.) Cash outflow

E.) Opportunity cost

F.) Expansion cost