In answering net present value/internal rate of questions from chapter 13, you could either use the present value tables at the back of the chapter or a financial calculator. 1. Which of the following capital budgeting methods consider the time value of money? a. Simple rate of return. b. Internal rate of retum. c. Both of the above. d. None of the above. 2. If the discount rate used is 16%, and the net present value is zero, the internal rate of return would be: a. zero. b. greater than 16% c. less than 16%. d. equal to 16%. 3. If the internal rate of return of an investment is 16% and the discount rate is 14%, the net present value of the same investment would be: 2. positive. b. negative. c. zero. d cannot be determined. 4. Without knowing any other information, which of the following projects would definitely be acceptable to invest in? a. Project A has a payback period of five years. b. Project B has a positive net present value. c. Project C has an internal rate of return of 10%. d. All of the above. e. None of the above. 5. Jenkins is considering investing in a project that will require an initial investment of $200,000 and will generate cash flows of $52,757 per year for five years. Jenkins requires a 12% retum on all investments. If Jenkins uses the net present value and internal rate of return methods respectively, would Jenkins accept reject the investment? Net present value Intemal rate of retum a. Reject Accept b. Accept Reject c. Reject Reject d. Acepet Accept