a. C. a. a. 13. When a project has uneven projected cash inflows over its life, a management accountant (as we did in class) may be forced to use (with the net present value method) to find the project's internal rate of return. a screening decision b. a trial-and-error approach a sensitivity analysis approach d. a preference decision 14. Which method of evaluating capital projects assumes that cash inflows can be immediately reinvested in new projects at the hurdle rate? internal rate of return b. payback period net present value d. accounting rate of return 15. Which method of evaluating capital projects assumes that cash inflows can be immediately reinvested in new projects at the internal rate of return? internal rate of return b. payback period net present value d. accounting rate of return 16. In questions 4-8, you evaluated XYZ Company's proposed $800,000 capital budgeting project wherein the income tax rate was estimated to be 30%. If instead, what would be the impact on the net present value of the proposal if the actual income tax rate was 45%? It would increase the net present value of the proposal. b. It would decrease the net present value of the proposal. It would not affect the net present value of the proposal. d. Potentially it could increase or decrease the net present value of the proposal. Which is the best choice? The IRR method will always provide the same answer in screening decision making as the method. Accounting rate of return method (AROR) b. Net present value method (NPV) Profitability index method (PI) Both (a) & (b) e. Both (b) & (c) a. 17. a. d