4. Which of the following is the most appropriate decision rule for mutually exclusive projects? A. Accept the project with the highest NPV, subject to the condition that the NPV is greater than zero. B. If the NPV method and the IRR method give conflicting signals, select the project with the highest IRR. C Accept both projects if their NPV is greater than zero. D. Accept both projects if their IRR is greater than the required rate of return. E.Accept the project under payback rule if both projects have positive NPVS. 5. An analyst has gathered the following data about a company with a 10% cost of capital: Project A Project B $20,000 Initial Cost $10,000 Life 5 years 5 years Cash inflows $5,000/year $7,500/year If the project A and project B are independent, what should the company do? A. Accept both project A and project B B. Reject project A and accept project B C. Reject both project A and project B D. Accept project A and reject project B E. We cannot make decision under given information. 6. Which of the following statements are identified with financial break-even point? 1. The present value of the cash inflows exactly offsets the initial cash outflow. II. The payback period is equal to the life of the project. III. The NPV is zero. 1. The discounted payback period equals the life of the project. A. I and II only 8. I and Ill only C. II and IV only D. I, II, and Ill only E. I, II, and IV only