A) Which of the following statements about the IRR is correct?

It is the same as the firm's required rate of return.

It is the discount rate that equates the present value of a project's expected future cash flows to the initial amount invested.

It is the discount rate at which the net present value of a project is negative.

It is the rate of return at which a project's payback period is shortest.

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B) Which of the following statements is true?

A project should be purchased if its NPV is positive.

A project with only cash outflows and no cash inflows would

The traditional payback period should be prioritized for cap there is a conflict in the project rankings using the NPV method

"The NPV method should be used to evaluate independent should be used to evaluate mutually exclusive projects."

C) The primary purpose of a capital budget is to forecast:

the target payback periods of the projects

the funds required to purchase fixed assets for future projects

the future value of the cash inflows from various projects

the terminal value of the cash flows from different projects