1. The option to wait in capital budgeting analysis __________________________. A) may have value even if a project currently does not B) is independent of the projects required rate of return C) has no impact on the net present value (NPV) of the project D) is valueless when a project has a positive net present value (NPV) given immediate implementation

2. The use of the overall firms weighted average cost of capital (WACC or R_WACC) in discounting projects of different risk levels results in the _______________________. A) rejection of too many high-risk projects B) acceptance of too many low-risk projects C) acceptance of too many high-risk projects and rejection of too many low-risk projects D) acceptance of too many low-risk projects and rejection of too many high-risk projects

3. A projects total (or net) cash flow will increase when the ____________________. A) depreciation expense increases B) sales projections are lower C) net working capital requirement increases D) variable costs increase