1. The following are disadvantages of using the payback rule EXCEPT the rule: (0.5 pts) A. ignores all cash flow after the cutoff date. B. does not use the time value of money. C. is easy to calculate and use. D. gives equal weight to all cash flows before the cutoff date. 2. If an investment project (normal project, i.e, with initial outlay and positive cash inflows in the future) has an IRR lower than the cost of capital, the NPV for that project is: (0.5 pts) A. positive. B. negative. C. zero D. unable to determine. 3. Which of the following statements is CORRECT? (0.5 pts) A. If Project A's IRR exceeds Project B's, then A must have the higher NPV B. If a project with normal cash flows has an IRR equal to the discount rate, the project's NPV must equal to zero. C. If the NPV is negative, the IRR must also be negative. D. If a project with normal cash flows has an IRR equal to the discount rate, the project must also have a positive NPV. 4. The net present value of a project depends upon the: (0.5 pts) market mood. company's choice of accounting method. manager's tastes and preferences. project's cash flows and opportunity cost of capital. A. B. C. D