8. Which of the statement below is TRUE?

A) At any cost of capital we can find a project's NPV by simply adding up all of the project's undiscounted cash flows.

B) IRRs are expressed in percents while NPVs are expressed in dollars,.

C) The NPV profile graph illustrates the positive relationship between the present value and the discount rate.

D) As we move from left to righton the NPV profile graph, the discount rate or cost of capital goes down.

9. Which of the following is TRUE?

A) a firm's equity multiplier and its use of debt are inversely related.

B)a higher cash coverage ratio indicates that a firm is more liketly to default on its debt obligations.

C) a comparison of Apple with Google for 2017 would be an example of cross-section analysis.

D) According to the DuPont framework, a firm's ROE is inversely related to its total asset turnover.

10. When a firm's accounts payable goes up this represents a ~ of funds for the firm.

a) source

b) loss

c) repayment

d) use

15. Which of the following statement is TRUE?

A) Straight-line depreciation results in smaller depreciation expenses in the later years of an asset's useful life.

B) Selling an asset at a profit results in lower taxes being paid by the corporation.

C) Erosion costs always add to a project's incremental cash flows.

D) Including an estimate of a project's opportunity costs would redue that project incremental cash flows.

30. Which of the statements below is TRUE?

a) When using trial-and-error to find the IRR, if a discount rate of 8% results in a positive NPV, the IRR would be below 8%

b) Ceteris paribus, a higher cost of capital would increase a project's NPV

c) Ceteris paribus, higher incremental cash flows would increase a project's NPV

d) Projects with NPV's greater than zero would have IRRs that are above the cost of capital.