( ) 12. If the IRR for a project is 20%, then the project's NPV would be: A. Negative at a discount rate of 15%. B. Positive at a discount rate of 25%. C. Negative at a discount rate of 25%. D. Positive at a discount rate of 20%. ( ) 13. If the net present value of a project which costs $10,000 is -$1,000 when the discount rate is 10%, then the: A. Project's IRR equals 10%. B. Project's rate of return is greater than 10%. C. Project's rate of return is less than 10%. D. project's cash inflows total $9,000. C ) 14. Projects A and B are equally risky, mutually exclusive, and have normal cash flows. Project A has an IRR of 12%, while Project B's IRR is 10%. The two projects have the same NPV when the discount rate is 7%. Which of the following statements is CORRECT? A. If the discount rate is 10%, both projects will have positive NPVs. B. If the discount rate is 11%, Project B will have the higher NPV. C. If the discount rate is 13%, Project A will have the lower NPV. D. If the discount rate is 14%, both projects will have a negative NPV C 15. Sensitivity analysis evaluates projects by: A. Forecasting changes in interest rates that would increase financing costs. B. Recording profitability changes while changing one variable at a time. C. Insuring that the project sponsor has proper incentives. D. Testing for interrelated variables. ( ) 16. Which of the following changes, if of a sufficient magnitude, could turn a negative NPV project into a positive NPV project? A. A decrease in the estimated annual sales. B. An increase in the discount rate. C. An increase in the initial investment. D. A decrease in the fixed costs