1. The option to wait in capital budgeting analysis A) is independent of the project's required rate of retum B) has no impact on the net present value (NPV) of the project C) may have value even if a project currently does not D) is valueless when a project has a positive net present value (NPV) given immediate implementation 2. A capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decisions. In reality, these decisions may be highly interwoven. This interweaving is most likely to result in A) firms rejecting positive net present value, all-equity projects because changing to a capital structure with debt will always create negative net present values B) firms foregoing project analysis and just making decisions at random C) firms never changing their capital structure because all capital budgeting decisions will be overridden by capital structure decisions D) firms accepting some negative net present value all-equity projects because changing the capital structure adds enough positive debt (or interest) tax shield value to create a positive net present value 3. The debt (or interest) tax shield has no value for a firm when A) the firm's debt-to-equity ratio is equal to one B) the firm's debt-to-equity ratio is equal to 0.5 C) the firm's debt-to-equity ratio is equal to zero. D) shareholders fully utilize homemade leverage