6) The selection of Project A or Project B eliminates the option of selecting the other project. Which one of the following terms best describes the relationship between Project A and Project B? A) Independent B) Conventional C) Multiple choice D) Mutually exclusive E) Crosswise 7) An NPV of a project: A) is equal to the initial investment when the internal rate of return is equal to the required return. B) is affected by the timing of an investment's cash flows. C) ignores cash flows that are distant in the future. D) increases as the required rate of return increases. E) method of analysis cannot be applied to mutually exclusive projects. 8) The project will produce value for its owners when: A) PI is more than 1 B) Negative NPV C) Negative rate of return D) Positive IRR E) None of the above 9) Time value of money is ignored in: A) Discounted payback B) Profitability index C) Net present value D) Discounted cash flow analysis E) None of the above 10) Which of the following statements is correct: A) Projects with unconventional cash flows have multiple internal rates of return. B) If two projects are mutually exclusive, you should select the project with the shortest payback period. C) If the IRR exceeds the required return, the profitability index will be less than 1.0. D) The profitability index will be greater than 1.0 when the net present value is negative