1)Under the net-present-value method, if the cost of the asset is less than the present value of the future cash flows, the:

investment's expected return is greater than the firm's cost of capital

firm's cost of capital is greater than the rate of return on assets

net-present-value is negative

investment should not be made

2) A capital investment generates a satisfactory rate of return when its return is:

Greater than the internal rate of return

Less than the cost of capital

Greater than or equal to the cost of capital

Equal to or less than the cost of capital