QUESTION 1 For independent investments with the normal cash flow, which of the following statements is false? The investor would take investments when discount rates are less than internal rate of return. The investor would take investments when discount rates are less than modified internal rate of return. The investor would take investments from highest net present values with constrained capital. The investor would take investments with positive net present values. QUESTION 2 There are four projects. The initial investment, along with the expected cash flow at the end of the first year, the expected cash flows are in perpetuity with constant growth rate, and the cost of capital is shown for each case. Which investment should be the best one? A) B) C) D) Initial investment $100,000 $90,000 $60,000 $80,000 Cash flow in year 1 $12.000 $10,000 $6,000 $8,000 Growth Rate 1.25% 1.50% 2.50% 1.75% Cost of Capital 9.10% 9.30% 7.20% 8.00% A B D QUESTION 1 For independent investments with the normal cash flow, which of the following statements is false? The investor would take investments when discount rates are less than internal rate of return. The investor would take investments when discount rates are less than modified internal rate of return. The investor would take investments from highest net present values with constrained capital. The investor would take investments with positive net present values. QUESTION 2 There are four projects. The initial investment, along with the expected cash flow at the end of the first year, the expected cash flows are in perpetuity with constant growth rate, and the cost of capital is shown for each case. Which investment should be the best one? A) B) C) D) Initial investment $100,000 $90,000 $60,000 $80,000 Cash flow in year 1 $12.000 $10,000 $6,000 $8,000 Growth Rate 1.25% 1.50% 2.50% 1.75% Cost of Capital 9.10% 9.30% 7.20% 8.00% A B D