According to the NPV decision rule, an investor considering a project with an NPVof $1 would

a. reject the investment.

b. lose more money on the investment.

c. accept the investment.

d. be indifferent between accepting or rejecting the investment

When deciding whether or not to refinance a home loan, the least important factor to consider is:

a. amortization period of your existing/new loan.

b. interest rate.

c. closing costs.

d. the number of papers you have to sign.

Given a fully amortized mortgage, which of the following is true?

a. A higher interest rate results in lower periodic payments.

b. A longer term results in larger periodic payments.

c. As the loan term increases, the monthly payment required to fully amortize the loan decreases.

d. Higher interest rates result in shorter payback periods.

Uncertainty arising from the possibility of defaulting on borrowed funds for an investment is known as

a. business risk.

b. financial risk.

c. purchasing power risk.

d. liquidity risk.