23. Which one of the following will decrease the net present value of a project A) Increasing the value of each of the project's discounted cash inflows B) Moving each cash inflow forward one tim w cach cash inflow forward one time period, such as from Year 3 to y car C) Decreasing the required discount rate D) Increasing the project's initial cost at time zero E) Increasing the amount of the final cash inflow 24. The internal rate of return: A) may produce multiple rates of return when cash flows are conventional. B) is best used when comparing mutually exclusive projects. C) is rarely used in the business world today. D) is principally used to evaluate small dollar projects. E) is easy to understand. 25. Phillips Equipment has 6,500 bonds outstanding that are selling at 96.5 percent of par. Bonds with similar characteristics are yielding 6.7 percent, pretax. The company also has 48,000 shares of 5.5 percent preferred stock and 75,000 shares of common stock outstanding. The preferred stock sells for $64 a share. The common stock has a beta of 1.32 and sells for $41 a share. The preferred stock has a stated value of $100. The U.S. Treasury bill is yielding 2.2 percent and the return on the market is 10.6 percent. The corporate tax rate is 21 percent. What is the weighted average cost of capital? A) 8.09 percent B) 8.64 percent C) 10.18 percent D) 9.30 percent E) 10.56 percent 26. All of the following are related to a proposed project. Which one of these should be included in the cash flow at Time 0? A) Loan obtained to finance the project B) Initial investment in inventory to support the project C) Annual depreciation tax shield D) Aftertax salvage value E) Net working capital recovery 27. Changes in the net working capital requirements: A) can affect the cash flows of a project every year of the project's life. B) only affect the initial cash flows of a project. C) only affect the initial and final cash flows of a project. D) are generally excluded from project analysis due to their irrelevance to the total project. E) are excluded from project analysis as long as they are recovered when the project ends