6 The net present value (NPV) rule can be best stated as: a. An investment should be accepted if, and only if the NPv is exactly equal to zero. b. An investment should be rejected if the NPv is positive and accepted if it is negative. c. An investment should be accepted if the NPv is positive and rejected if it is negative. d. An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPw and therefore should always be accepted. a) Debt 10%, Equity 90%, WACC-11%. b) Debt 20%, Equity 80%, WACC 10.5%. c) Debt 30%, Equitys70%, WAccm 11%. d) Debt 40%, Equity 60%, WACC 11.5%. 8) You have a choice between 2 mutually exclusive investments. If you require a 15% return, which investment should you choose? $10,000 $2,000 25% RR 17% 20% Profit Margin a. Project B because it has a higher IRR. b. Project B because it has a higher profit margin. c. There is no difference between project A and project B. d. Project A because it has a lower IRR. because it has a higher NPv. 9) Ang Enterprises now has no debt and a beta of 0.79. If its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%, what would Ang's levered be? a) 0.64 b) 0.79 c) 1.00 d) 1.11. e) 1.58 10 a dividend of Do Sl 50. The required rate of return is r 10.1%, and the constant A stock just paid growth rate is g 40%. What is the current stock price? a $23.11 b $23.70 cs2431 dS24 93 11 e525,57 flow and wAcc Tuttle Enterprises is considering a project that has the following cash data. What is the project's NPv? Note that if a project's projected NPv is negative, it should be rejected