It is fair to say that the internal rate of return can be calculated without knowing a project's required return.

Question 10 options:

True

False

Depends on project's risk

Depends on project's return

Net present value _____________.

Question 5 options:

is equal to the initial investment in a project

is equal to the present value of the project benefits

is equal to zero when the discount rate used is equal to the IRR

is simplified by the fact that future cash flows are easy to estimate

requires the firm set an arbitrary cutoff point for determining whether an investment is acceptable

If stocks advanced 10% in a year when inflation was 3%, what must have been the real return?

Question 13 options:

	> 10%
	= 10%
	< 10%
	None of the above.