Elinore is asked to invest $5,000 in a friend's business with the promise that the friend will repay $5,500 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,450 in one year's time. U.S. securities of similar term offer a rate of return of 6%. What is the opportunity cost of capital in this case? A. 9% B. 6% C. 11% D. 10% You have 3 projects with the following cash flows: For which of these projects is the IRR rule reliable? Put another way, for which of these projects would you feel comfortable that the IRR decision rule would agree with the NPV decision rule? (Choose the most appropriate answer) A. The IRR rule should agree with the NPV rule for all of the above projects. B. Project 3 C. Project 18 Project 3 D. There is not enough information available to answer this question. E. Project 1 F. Project 2 Consider a project with the following cash flows: Assume the appropriate discount rate for this project is 12%. The payback period for this project is closest to: A. 3.75 B. 2.5 C. 2 D. 3