Question 1

Which one of the following statements is NOT correct?

Group of answer choices

If the initial cost of a project is increased, the net present value of that project will decrease.

The MIRR is specifically designed to address conventional cash flows.

If the internal rate of return equals the required return, the net present value will equal zero.

Net present value is equal to the investments cash inflows discounted to today's dollars minus the initial cost of the investment.

Net present value is negative when the required return exceeds the internal rate of return.

Question 2

Which one of the following methods of analysis could completely ignore some cash flows?

Group of answer choices

Net present value

Internal rate of return

Payback period rule

Profitability index

None of the above