1. MIRR assumes cash flows are invested at: *

a. Market interest rate

b. IRR

c. WACC

d. All of the above

e. None of the above

2. Which of the following is considered one of the strengths of the payback period? *

a. It takes into consideration the time value of money

b. Hard to calculate

c. Includes cash flows after the period

d. Indication of the projects risk and liquidity

e. None of the above

3. The cost of capital is equal to required rate of return on equity in the case investors are only *

a. Valuation manager

b. Common stockholders

c. Asset sellers

d. Equity dealers

e. None of the above