1. If IRR and required rate of return is the same, it must be true that:

a) The project should be accepted.

b) Payback Period is short.

c) NPV is negative.

d) NPV is positive.

e) NPV is zero.

2. Which of the following is the least important factor in investment decision making? I. Opportunity cost

II. Sunk cost

III. Positive/negative side effects

a) I and II

b) I and III

c) II only

d) I only since it is not a real cost