8. A machine is being considered as a capital investment. Its cost is exactly equal to the present value of the inflows promised by the machine over its useful life discounted at the company's cost of capital. If the cost of capital is 14%, then the internal rate of return (IRR) of this machine is: a. Greater than 14% c. Equal to 14% b. Less than 14% d. Cannot be determined from the given information 9. Refer to the preceding question. The net present value (NPV) of the machine must be: a. Greater than zero c. Zero b. Less than zero d. Cannot be determined from the given information 10. An assumption made by the net present value method is that: a. All cash flows occur at the beginning c. All cash flows ignore the time value of of the period money b. All cash flows are reinvested in other d. All cash flows are reinvested in other projects that yield the internal rate of projects that yield the cost of capital return 11. You want to determine the internal rate of return of a project that generates non-cqual cash flows over its life. By trial and error, you find that a discount rate of 16% yields a negative net present value, but a discount rate of 10% yields a positive net present value. The true rate of return must be: a. Greater than 16% or less than 10% c. Greater than 16% b. Less than 16% but greater than 10% d. Cannot be determined from the given information