1.) Within the IRR calculation, there is an implicit assumption that all cash inflows are reinvested at the IRR rate.

True/False

2.) The increase in net working capital required for a project is normally recaptured in the projects _______ year.

A.) Second to last

B.) None, working capital is an operating expense

C.) Last

D.) First

E.) Second

3.) When calculating the NINV for a project, which of the following items should not be considered?

A.) An increase in inventory

B.) Installation and shipping charges

C.) Salvage of an old piece of equipment that is being replaced

D.) An increase in accounts payable

E.) The first years net operating cash flows