17. You have partitioned the IRRs for two mutualy exclusive investments, shown below and the information is IRR % of IRR Provided % of RR Provided by b prating CahSa Flow 70% 85% Investment 1 Flow 30% 15% Investment 2 25% 22% From this information, which of the following is the most likely conclusion? a. Investment 1 has more cash flow risk than Investment 2 b. Investment 2 has more cash flow risk than Investment 1 e. Investment 1 should definitely be invested in over Investment 2 18. A capital investment has a projected NPV of $50,000. Which of the following changes in model assumptions would most likely increase the NPV? A. An increase in the upfront cost B. An increase in the required rate of return C. An increase in depreciation expense D. A decrease in cash flows that occur after the payback period 19) Fixed costs: change as a small quantity of output produced changes. By are constant over the short-run regardless of the quantity of output produced. C) are defined as the change in total costs when one more unit of output is produced. D) are subtracted from sales to compute the contribution margin. 20) By definition, which one of the following must equal zero at the accounting break-even poin A) Net present value B) Depreciation Contribution margin D) Net income In chapter 1 1, cash break-even involves breaking even on the basis of A) NPV B) Net income C) Operating cash flow 22) The procedure of allocating a fixed amount of funds for capital spending to called: A) marginal spending. capital preservation. soft rationing D) hard rationing