Question 1 (1 point)

The cost of capital is the primary factor in deciding whether to pursue an investment.

Question 1 options:

	a) True
	b) False

Question 2 (1 point)

The cost of capital typically provides the basis upon which the targeted rate of return is determined.

Question 2 options:

	a) True
	b) False

Question 3 (1 point)

The cost of capital is the rate at which the future cash flows are discounted.

Question 3 options:

	a) True
	b) False

Question 4 (1 point)

Saved

The NPV provides an estimate of how much (present) value the investment adds to the business.

Question 4 options:

	a) True
	b) False

Question 5 (1 point)

The time-value of money allows us to include time as a factor in the decision process.

Question 5 options:

	a) True
	b) False