1. If a project has NPV = 0, what types of following investors should have received their required rate of return from this project?

A. Bondholders

B. Preferred Stockholders

C. Common Stockholders

D. None of the above

E. All of the above

2. Both NPV and IRR assume that the reinvestment rate on cash flows is equal to the cost of capital.

A. True

B. False

3. For two mutually projects, we assume their NPV profiles cross and the crossover rate is 8%. We assume the require rate of return is r. We use both NPV and IRR methods to analyze the two projects. Which of the following statements is most correct?

A. If r > 8%, NPV and IRR methods get similar decisions.

B. If r > 8%, NPV and IRR methods get conflicting decisions.

C. If r < 8%, NPV and ITT methods get similar decisions.

D. If r < 8%, NPV and IRR methods get conflicting decisions.

E. Ignores cash flows occurring after the payback period.