24. If a project has an internal rate of return of 14% and a positive net present value, which of the following statements is TRUE regarding the hurdle rate used for the net present value computation? a. The hurdle rate must have been greater than 14%. b. The hurdle rate must have been less than 14%. c. The hurdle rate must have been equal to 14%. d. The hurdle rate must have been 0%. 25.. If a management accountant forgot to include a $20,000 rent expense payable in year 4 of a 9 year capital budgeting project, what would have been the impact on the net present value of the proposed project if it were included? a. It would increase the net present value of the proposed project. b. It would decrease the net present value of the proposed project. c. It would not affect the net present value of the proposed project. d. Potentially it could increase or decrease the net present value of the proposed project. 26. An example of a sunk cost (irrelevant cost) in a capital budgeting decision for the potential purchase of a new airplane by Southwest Airlines is a. increase in working capital required. b. the book value of the old airplane c. the delivery costs on the new airplane. d. increase in fuel costs to operate the new airplane e.. all of the above are examples of sunk costs