ch 22 If the net present value is positive,

1. the internal rate of return exceeds the firm's cost of capital

2. the internal rate of return is less than the firm's cost of capital

3. the present value of cash inflows exceeds the present cost of an investment

4. the present value of cash inflows is less than the present cost of an investment

A 2 and 3

B 1 and 3

C 1 and 4

D 2 and 4