NPV will be positive if a firm's:

	a.	marginal cost of equity exceeds the cost of capital.
	b.	cash flow yield exceeds the cost of capital.
	c.	discount rate exceeds the cost of capital.
	d.	internal rate of return (IRR) exceeds the cost of capital.
	e.	rate of return expected by investors exceeds the firm's weighted average cost of capital.

Which of the following is most accurate about the shipping and installation costs associated with a capital budgeting project? These costs are considered part of the:

	a.	incremental operating cash flows because shipping and installation costs represent expenses that have to be written off over the life of the asset.
	b.	sunk costs because these expenses do not affect any current or future cash flows associated with investing in the asset.
	c.	the terminal cash flows, because these expenses aren't paid until the end of the asset's life.
	d.	initial investment outlay because these expenses are effectively part of the asset's purchase price.
	e.	opportunity cost of the project because these costs are increasing the potential of the project.