101 the following questions. Mark your sel UIL. Show all work on the problems Tum in your examination and se finished. Your score will be based on your answers on the scantron and me 4 points per question Which of the following would increase the NPV of held constant)? owing questions. Mark your selection on the examination and on ur examination and scantron when you are on the scantron and not on the answer sheet. 1. project being considered all other things A decrease in the incremental revenues generated by the project. An increase in the initial cost of the project. An increase in the required rate of return on the project. The use of straight-line depreciation ra thod of depreciating the teline depreciation rather than an accelerated method of depreciat asset. A decrease in the operating costs associated with the project. The internal rate of return (IRR) for a project is the discount rate at which a. the project's net present value is positive. b. the net present value of the project is equal to zero. c. the project's expected net cash flows generate positive net present we het present value of the project is equal to the required rate or the required rate of return is equal to the internal rate of return riod (time-0) of a proposed Which of the following should NOT be considered in the initial period (time replacement decision? a. The book value of the machine to be replaced. b. Required increases in inventories and working capital. The market value of the machine to be replaced. Tax implications on the sale of the new machine. An investment tax credit. The most difficult part of the capital budgeting process is: estimating the project's expected cash flows. computing the project's internal rate of return. c. adjusting for the relative risk of the project. developing the original ideas for projects. deciding on the appropriate capital budgeting technique. the required rate of return required rate of return If the net present value of a proposed project is positive, then: the internal rate of return for the project is greater than the regu the internal rate of return for the project is less than the require the internal rate of return for the project is zero. the internal rate of return for the project is less than zero the internal rate of return for the project is equal to the requi the required rate of return