L The internal rate of return is the: A. B) disco C) discount rate r initial cost t rate that causes a project's aftertax income to equal zero. nrate that results in a zero net present value for the project discount e that results in a net present value equal to the project's rate of return required by the project's investors. D) E) project's current market rate of return. Both Projects A and B are acceptable as independent projects. However, the selection of either one of these of selecting the other project. Which one of the follo describes the relationship between Project A and Project B? A) Conventional B) Uncoventional projects eliminates the option terms best C) Mutually exclusive Mutually inclusive E) Erosion 13. Which one of the following can be defined as a benefnt-cost ratio? A) Net present value B) Internal rate of return C) Profnitability index ) Accounting rate of return E) Modified internal rate of return 14. Which one of the following indicates that a project is expected to areate value for its owners? A) Profitability index less than 1.0 B) Payback period greater than the requirement D) E) Positive net present value Positive average accounting rate of return Internal rate of return that is less than the requirement 16. Which one of the following statements is correct? A) If the IRR exceeds the required return, the profitablity ndex less than 1.0. B) The profitability index will be greater than 1.0 when the net value is negative. C) When the internal rate of return is greater than the req the net present value is positive. D) Projects with conventional cash flows have multiple inte return E) If two projects are mutually exclusive, you should select the with the shortest payback period. uired return