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Click here to watch the Net Present Value video and then answer the questions included below. 1. Which of the following is required to compute
Click here to watch the Net Present Value video and then answer the questions included below. 1. Which of the following is required to compute the NPV of a project? a. Cost of the project b. Life of the project c. Required rate of return d. All of these choices are correct. 2. Net present value is calculated by: a. (Present value of project's future cash inflows) - (Present value of the project's cost) b. (Present value of the project's cost) - (Present value of project's future cash inflows) c. (Present value of the project) - (Required return on the investment) d. (Present value of the project's future cash inflows) - (Present value of the project's cost) + (Required return) d 3. When should the decision of accepting a project be taken? a. When the net present value of the project is positive. b. When the net present value of the project is negative. c. When the net present value of the project is neither positive nor negative. d. Both "When the net present value of the project is positive" and "When the net present value of the project is neither positive nor negative" are correct. ) returns a present value for the cash inflows equal to $57,559.70. 4. The built-in function in Microsoft Excel PV a. (12%, 6, 14000) b. (12%, -6, 14000) C. (-12%, 6, 14000) d. (12%, 6, -14000)
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