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1. Which of the following investment rules does rnot use the time value of money concept? A. Net present valuc B. Internal rate of return

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1. Which of the following investment rules does rnot use the time value of money concept? A. Net present valuc B. Internal rate of return C. The payback period D. Profitability index 2. You are given a job to make a decision on project X, which is composed of three indep projects A, B, and C that have NPVs of + $70, -$40 and+ S100, respectively. How would about making the decision about whether to accept or reject the project? A. Accept project X as it has a positive NPV. B. Reject project X C. Break up the project into its components: Accept A and C, but reject B. D. Break up the project into its components: Accept C 3. Muscle Company is investing in a giant crane. It is expected to cost $5 million in in investment, and it is expected to generate an end-of-year cash flow of $6 million. Calcu the IRR. A. 14.6 percent B. 16.4 percent C. 20.0 percernt D. 22.1 percent 4. ProjectX has the following cash flows: Cs +2,000, Ci--1 ,300, and C2 =-1,50 IRR of the project is 25 percent and if the cost of capital is 18 percent, you would A. accept the project B. reject the project . Music Company is considering investing in a new project. The project will vestment of $2,400,000 and will generate $1,200,000 (after-tax) cash flows f

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