1. Investments of large amounts of cash in plant assets are called _____.

A) cash outflows

B) capital budgeting

C) capital projects

D) capital outlays

2)

A capital investment has a net present value of $1,000.00 at a required rate of return of 10%. At a 12% required rate of return, the net present value of the investment is $100.00. At a 14% required rate of return, the net present value of the investment is $0. The capital investment should be rejected if ________.

A.	the required rate of return is less than 14%
B.	the required rate of return exceeds 12%
C.	the required rate of return exceeds 14%
D.	the required rate of return is less than 12%

3) The minimum desired rate of return on an investment is sometimes referred to as ______.

A) the discount rate

B) the hurdle rate

C) the required rate of return

D) all of the above

4)

If the internal rate of return on a project is _____ the required rate of return, then the project should be accepted.

A) higher than

B) lower than

C) the same as

D) none of the above