12. Which case the conclusion from the IRR rule can be different from the one from the NPV rule?

A) when the stream of cash flow changes in sign more than once.

B) when the projects are mutually exclusive.

C) when the NPV profile shows non-conventional.

D) (A) and (B)

E) (A), (B), and (C)

14. Which statement(s) is (are) true, assuming other variables remain fixed?

A) The present value increases with the length of period.

B) The present value increases with discount rates.

C) The future value increases with the length of period.

D) The present value increases with the frequency of compounding.

E) None of the above is true.

D) (A) and (B) E) (A), (B), and (C)

16. An old equipment is sold at $12,000 which has the (un-depreciated) book value of $10,000. If the marginal tax rate is 34%, what is the after-tax salvage value?

A) $2,000

B) $11,320

C) $7,920

D) $12,000

E) $10,680