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ao) The IRR that causes the net present value of the differences between two project's cash flows to equal zero is called the: A) required

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ao) The IRR that causes the net present value of the differences between two project's cash flows to equal zero is called the: A) required return B) zero-sum rate. C) break-even rate. D) crossover rate. E) present value rate. 41) Swenson's is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent, Given this you know that: A) both projects provide an internal rate of return of 11.7 percent B) the project thats acceptable at a discount rate of 11 percent should be rejected . discount rate of 12 percent. C) both projects have a negative NPV at discount D) both projects have a zero NPV at a discount rate of 11.7 percent. E) neither project will be accepted if the discount rate is less than 11.7 percent rates greater than 11.7 percent. 42) You are comparing two mutually exclusive projects. The crossover point is 12.3 percent. 42) You have determined that you should accept project A if the required return is 13.1 percent. This implies you should: A) accept Project B only when the required return is equal to the crossover rate B) accept Project B if the required return is less than 13.1 percent. C) be indifferent to the projects at any discount rate above 13.1 percent. D) always accept Project A if the required return exceeds the crossover rate. E) always accept Project A. 43) 43) Graphing the crossover point helps explain: A) how the profitability index and the net present value are related. B) how the duration of a project affects the decision as to which project to accept C) why one project is always superior to another project. D) how the net present value and the initial cash outflow of a project are related. E) how decisions concerning mutually exclusive projects are derived. 44) Which one of the following methods of analysis provides the best information on the ) cost-benefit aspects of a project? A) Profitability index B) Internal rate of return C) Average accounting return D) Net present value E) Payback 44)

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