18. Which method of evaluating capital projects assumes that cash inflows can be immediately reinvested in new projects at the internal rate of return?

a.	internal rate of return
b.	payback period
c.	net present value
d.	accounting rate of return

19. In question 5 above using the NPV screening technique, you evaluated XYZ Companys proposed $1,000,000 capital budgeting project wherein the income tax rate was estimated to be 40%. If instead, what would be the impact on the net present value of the proposal if the actual income tax rate was 25%?

a.	It would increase the net present value of the proposal.
b.	It would decrease the net present value of the proposal.
c.	It would not affect the net present value of the proposal.
d.	Potentially, it could increase or decrease the net present value of the proposal.

20. If the net present value (NPV) of an investment is zero, then the internal rate of return (IRR) is:

a.	less than the hurdle rate.
b.	more than the hurdle rate.
c.	equal to the hurdle rate.
d.	negative.