QUESTION 16 Ahmed is analysing two investments, Investment A has an IRR of 23% and Investment B has an IRR of 17%, if the cost of capital is 10% then: O Both projects are rejected due to the low IRR O Both projects are rejected as the IRR is higher than the cost of capital Investment B is better than Investment A O None of the above are true QUESTION 17 Calculate the following investments payback period if it has an initial cost of 4200 and generates a return of 2300, 1200, 2000 and 5200. O2.35 years O2.74 years O254 years 4 years QUESTION 18 Which of the following statements about the NPV is false: The NPV is calculated by subtracting the initial investment from the present value of all future cash flows O This method consider the TVM by converting all cash flows to the present value NPV is measured in percentage and hence does not present the actual cash profit All of the above are true