I need help answering these problems
A positive net present value implies that O A. No other answer is correct 0 B. The project's expected return is higher than the market's return O C. The project's expected return is lower than the market's return O D. The project creates value relative to the best alternative opportunity with the same risk characteristics O E. The project destroys value relative to the best alternative opportunity with the same risk characteristics Reset Selection Jestion 2 of 10 5 Points You are considering investing in a four-year project that has the following cash flow structure: Co: 10,000, C1=-5000, 02=3000, 03=-4000. You are contemplating using the NPV rule, the naive IRR rule, and the payback rule over 2 years. 0 A. The NPV rule, the naive IRR rule, and the payback rule always give the same answer. Q B. The NPV rule and the naive IRR rule always give the same answer. Q C. The nai've IRR rule and the payback rule always give the same answer. O D. The NPV rule and the payback rule always give the same answer. Q E. No other answer is correct. Cash flows include 0 A. Always opportunity costs and sometimes sunk costs O B. Sometimes opportunity costs and never sunk costs O 0. Sometimes opportunity costs and sometimes sunk costs O D. Always opportunity costs and always sunk costs 0 E. Always opportunity costs and never sunk costs Reset Selection Question 4 of 10 5 Points Suppose that the opportunity cost of capital goes up and the cash flows of your project remain constant. The net present value of your project O A. No other answer is correct 0 B. remains the same O C. decreases O D. increases Fleset Selection One of your friends is considering investing in a project. The project's initial cash flow at time 0 is -300 dollars. The cash flows from period 1 onwards (starting at the end of period 1) represent a perpetuity paying $50 each period. Based on this information only, what recommendation would you give your friend? 0 A. Invest if the discount rate is equal to the IRR Q B. No other answer is correct O C. Invest if the discount rate is less than IRR O D. Invest if the discount rate is greater than IRR Reset Selection iestion 6 of 10 5 Points Your company bought a machine in January 2018 for $10,000. The IRS allows you to depreciate the machine in a straight line over 5 years. You can sell the machine at the end of 2020 for $8,000. The tax rate is 20%. What is the total cash flow associated with the sale of the machine? 0 A. No other answer is correct Q B. $10,000 0 C. $6,400 0 D. $8.000 Q E. $7.600 Accounts payable rises by 12 today and falls by 12 one year from now. Everything else is constant except for your cash holdings. The cost of capital is 20%. These cash flows have an NPV today of O A. It depends on the tax rate 03.2 Qc.-2 O D. No other answer is correct an Reset Selection istion 8 of 10 5 Points The discount rate is 0%. You just bought an asset. The IRS rules allow you to choose between two depreciation straight line schedules for your asset, respectively over five and seven years. You are going to sell the asset at the end of three years. Under the fiveyear depreciation schedule, you will experience a book gain. Under the seven-year depreciation schedule, you will experience a book loss. Which depreciation schedule do you prefer? O A. The five-year depreciation schedule 0 B. The seven-year depreciation schedule 0 c. I am indifferent O D. No other answer is correct Question 9 of 10 5 Points Suppose you invest $5,000 today and receive $8,000 five years from now. What is the IRR of this project? O A. 0.6 O B. No other answer is correct 0 C. I need more information to answer O D. 0,5 0 E. 0.75 Reset Selection Question 10 of 10 5 Points Last year, you invested in a project that has a certain return of 8%. You are considering investing $500 in a riskless project that would pay $150 in the first year and $400 in the second year. The risk-free rate is 5%. Should you invest in the project? 0 A. No Q B. I need more information to answer this question 0 0. Yes O D. I am indifferent
