1.

The net present value:

Group of answer choices

decreases as the required rate of return increases.

ignores cash flows that are distant in the future.

is equal to the initial investment when the internal rate of return is equal to the required return.

is unaffected by the timing of an investment's cash flows.

3.

Joe and Rich are both considering investing in a project that costs $28,050 and is expected to produce cash inflows of $17,380 in Year 1 and $16,830 in Year 2. Joe has a required return of 12.5 percent, but Rich demands a return of 8.5 percent. Who, if either, should accept this project?

Group of answer choices

Rich, but not Joe

Both Joe and Rich

Neither Joe nor Rich

Joe, but not Rich

What is the net present value of the following set of cash flows at a discount rate of 7 percent? At 11 percent? $13,173;$7,693 $14,675;$8,989 $14,675;$7,693 $13,173;$8,989