1. Which one of the following represents the level of output where net income of a project is zero? A. Financial break-even quantity B. Accounting break-even quantity C. Internal break-even quantity D. Cash break-even quantity E. Capital break-even quantity 2. The internal rate of return is defined as the: A. Maximum rate of return a firm expects to earn on a project. B. Rate of return a project will generate if the project in financed solely with internal funds. C. Discount rate that makes the net cash inflows of a project to zero. D. Discount rate that makes the net present value of a project to equal zero. E. Discount rate that makes the profitability index for a project to equal zero. 3. Which one of the following decreases the net present value of a project, holding all other else as constant? A. A decrease in the required rate of return, that is, discount rate. B. An increase in the terminal cash inflow C. A deferment of some cash inflows until a later year D. An increase in the after-tax salvage value of the fixed assets. E. A decrease in the initial capital requirement 4. G \& L Plastic Molders spent $58,000 last week repairing a machine. This week the company is trying to decide if the machine could be better utilized if they assigned it a proposed project. Should the $58,000 be included in the analysis? A. No B. Yes C. Not Sure