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porno # Cm Cost of Capital Comparison Conceptual Overview Explore how the timing and size of cash flows affect the net present yators of two

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porno # Cm Cost of Capital Comparison Conceptual Overview Explore how the timing and size of cash flows affect the net present yators of two alternative investments. th 1.000.000.000 500 gr Project S: NPV - CF, --$1.000 S7582 Project L: NPF-CFS -31.000 -$100.40 15 500 5471 NVI Cap 1. What is the approximate cost of capital for which the two cash flows are about equal? a. 10% b. 129 c. 13.5% d. 14.5% Select v 2. What is the approximate internal rate of return (IRR) for the Project L cash flow? a. 10% b. 12% C. 13.5% d. 14.5% -Select 3. What is the approximate internal rate of return (IRR) for the Project S cash flow? a. 10% b. 12% C. 13.5% d. 14.5% -Select- 4. What is the name for the point at which the two projects' NPVs are equal? a. Inflection point b. Equal NPV rate c. Crossover rate d. There is no special name for this point Select 5. At a cost of capital less than the point at which they cross, which project will have the higher NPV? 2. Projects b. Project L c. Project S and L will have the same NPV d. Cannot determine -Select 6. At a cost of capital greater than the point at which they cross, which project will have the higher NPV? a. Projects b. Project L c. Projects and will have the same NPU d. Cannot determine Select 7. The internal rate of return (IRR) is the point at which a project's NPV equals 0. If the cost of capital were 5% (move the slider so that is the case), then Project is the better project because it has the higher IRR. b. Project Lis the better project because it has the higher NPV, c. It depends because there is a conflict between IRR and NPV. 3. If the cost of capital was greater than the point at which the two projected NPVs are equal, then a. It depends because there is a conflict between IRR and NPV. b. There is no conflict because Project S has both a higher NPV and a higher IRR than Project L. c. There is no conflict because Project L has both a higher NPV and a higher IRR than Projects. Select

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