1) The "break-even" cash inflow for an investment project is the point at which ______.

A) the present value of the variable cost of future cash flows equals the present value of the fixed cost of future cash flows

B) the present value of the variable cost of future cash flows equals the present value of the variable cost of past cash flows

C) the net present value of the investment project is zero

D) the total cash revenues equal total expenses

2)

Assume the net present value method is used to evaluate investment opportunities. A manager is faced with several investments, but only has funding for one investment. Which investment should be chosen?

A) the investment with the lowest net present value.

B) the investment with a net present value equal to zero.

C) the investment with a negative net present value.

D) the investment with thelargest net present value.

3)

In the net present value method, the disposal value of a long term asset at the end of its useful like is considered to be a _______.

A) cash outflow at time zero.

B) cash inflow at time zero.

C) cash outflow in the year of disposal.

D) cash inflow in the year of disposal.