A Composite opportunity cost metric b Simple opportunity cost metric c Non-stochastic discount rate under all circumstances d Risk-adjusted discount rate under all circumstances Question 2 An investment costs $1548 and pays $138 in perpetuity. If the rate of interest is 9%, what is the NPV of the investment ?

a Negative $16.67 b Negative $14.67 c $18.98 d $0 Question 3 The M.I.R.R. is based on

a Cash flows being reinvested at the IRR. b Cash flows being reinvested at the YTM on treasury bonds. c Cash flows being reinvested at the WACC or a comparable rate. d Cash flows being reinvested at a rate always different from WACC Question 4 At a crossover rate of return , two or more streams of Net Present Values are :

a Flows with negative Internal Rates of Return b Flows with equal Internal Rates of Return c Equalized d Discontinuous Question 5 Flotation costs are incurred in the :

a Secondary capital market b Primary capital market c Preferred equity market only d Bond market only Question 6 NOWC includes only:

a Current or operating assets b Fixed assets c Stockholders' equity d Excess cash balances