and sign out on the sheet provided in the front of the classroom. True/False, Multiple choice. Answer all 20 questions on the provided scantron. Each question is worth 12.5 points. (250 total points) 1. The Net Present Value (or NPV) criteria for capital budgeting decisions assumes that expected future cash flows are reinvested at , and the Internal Rate of Return (or IRR) criteria assumes that expected future cash flows are reinvested at a. the firm's discount rate, the internal rate of return b. the internal rate of return, the internal rate of return c. the internal rate of return, the firm's discount rate d. neither criteria assumes reinvestment of future cash flows 2. The rate at which a project's Net Present Value is exactly equal to zero is known as the: a. Required rate of return b. Cost of capital c. Hurdle rate d. Internal rate of return 3. Project Boyaz is expected to generate $24,000 each year for the next four years. It will cost 60,000 to implement the project today. Ifthe project's required rate ofreturn is 12%, what is its profitability index? a. 1.21 b. 1.09 c. 0.96 d. 0.85 4. All else being held equal, if a company's transaction (flotation) costs associated with selling corporate securities increase, the company's cost of capital will: a. increase. b. decrease c. stay the same. l of 5