q. 15A firm is evaluating three capital projects. The net present values for the projects are as follows: project 1: $100 NPV, project 2:$10 NPV, project 3: NPV $-100

The firm should ________. A) accept Projects 1 and 2, and reject Project 3 B) accept Projects 1 and 3, and reject Project 2 C) accept Project 3, and reject Projects 1 and 2 D) accept all projects

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Q11. Which of the following is a disadvantage of payback period approach? A) It does not examine the size of the initial outlay. B) It does not use net profits as a measure of return. C) It does not explicitly consider the time value of money. D) It does not take into account an unconventional cash flow pattern.

Q12. Relevant cash flows for a project are best described as ________. A) incidental cash flows B) incremental cash flows C) sunk cash flows D) contingent cash flows

Q13. Cash outlays that had been previously made and have no effect on the cash flows relevant to a current decision are called ________. A) incremental historical costs B) incremental past expenses C) opportunity costs foregone D) sunk costs

Q14. Cash flows that could be realized from the best alternative use of an owned asset are called ________. A) incremental costs B) lost resale opportunities C) opportunity costs D) sunk costs Q15. A firm is evaluating three capi