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Question 2 (1 point) Which one of the following will occur when the internal rate of return equals the required return? O 1) The profitability
Question 2 (1 point) Which one of the following will occur when the internal rate of return equals the required return? O 1) The profitability index will equal zero. 2) The profitability index will equal the average accounting return. 3) The net present value will equal zero O 4) The net present value will equal the initial cash outflow. 5) The internal rate of return will equal zero Question 3 (1 point) A firm is considering a potential investment project that would result in an immediate loss in free cash flow of $106 Million, but would generate positive free cash flow of $5 Million next year. The firm expects the free cash flow produced by the project to grow annually at 2% forever. The firm's weighted average cost of capital (WACC) is 6%6. What is the NPV of the project? [Enter your answer in millions of dollars rounded to two decimal places. For example, if your answer is -1.23 Million, then enter just -1.23 in the answer box Your
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