9. If the calculated NPV is negative, then which of the following must be true? a. The discount rate used is equal to the internal rate of return. b. The discount rate used is too high. c. The discount rate used is greater than the internal rate of return. d. The discount rate used is too low. e. The discount rate used is less than the internal rate of return. 40. The internal rate of return of a capital investment a. Changes when the cost of capital changes. b. Is equal to the annual net cash flows divided by one half of the project's cost when the cash flows are an annuity. c. Must exceed the weighted average cost of capital in order for the firm to accept the investment. d. Is similar to the yield to maturity on a bond. e. Both c and d are true. 41. The Ace Company is considering investing in a piece of property which costs $105,000. The property will return a constant cash flow forever. If the firm's cost of capital is 9 percent, what is the minimum cash flow that would make the investment acceptable to Ace? a. $15,942 b. $10,831 c. $9,450 d. $2,375 e. $5,000 42. The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4,$35,000 per year in Years 5 through 9 , and $40,000 in Year 10 . This investment will cost the firm $150,000 today, and Assume cash flows occur evenly during the year, 1/365 th each period for this investment? a. 5.23 years b. 4.86 years c. 4.00 years d. 6.12 years e. 4.35 years