6. The length of time a net present value. is called the men to Bene d. profitability index e. discounted cash period 7. A situation in which accepting one invesment prevents the accepannce of anohe a. net present value profile b. operational ambiguity decision. e. mutually exclusive investment decision d. issues of scale problem. e multiple choices of operations decision 8. Which one of the following statements is correct concerning the -a. An investment is acceptable if its calculated payback period a less than some period? pre-specifved period of time. b. An e. An investment should be rejected if the payback is positive and accepted if in is negaaive. d. An investment is acceptable if its calculated payback period is greater than some pre-specifies investment should be accepted if the payback is positive and rejected if it is wegative period of time. An investment should be accepted any time the payback period is less than the discounted payback period, given a positive discount rate e. . An investment is acceptable if its IRR: a, is exactly equal to its net present value (NPV). b. c. is less than the required return. d. exceeds the required return. e. is exactly equal to 100 percent _ is exactly equal to zero. 10. Which one of the following types of securities has tended to produce the lowest real rate of ret the period 1926 through 2003? U.S. Treasury bills long-term government bonds small company stocks large company stocks a b. c. d. e. long-term corporate bonds The excess return required from a risky asset over that required from a risk-free assets a risk premium. b. geometric premium. c. excess returm. d. average return. 1 1. e. varnance