Detailed Answer please

(v) Should a firm invest in projects with NPV = $0? Yes No The firm is indifferent between accepting or rejecting projects with zero NPVS The firm should look at the PI and IRR of the projects ABC D (1 mark) (vi) Potential problems in using the IRR as a capital budgeting technique include: the timing problem multiple IRRS ABCD (vii) As the discount rate increases, the NPV of a project: ABCD the scale problem all of the above is unaffected. D cannot be determined without knowing the discount rate. ABCD increases. decreases. (viii) The NPV method focuses on: sales. B. accounting returns. C. profits. ABCO cash flows. (ix) The IRR method focuses on: sales accounting returns. profits. D cash flows. (x) Which method directly estimates the change in shareholder wealth? A Payback BIRR C NPV (1 mark) (1 mark) (1 mark) (1 mark) (1 mark) Page 3 of 12