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Question 2 10 pts in order to be The Internal Rate of Return needs to be greater than the approved. O junk bond rate project's
Question 2 10 pts in order to be The Internal Rate of Return needs to be greater than the approved. O junk bond rate project's discount rate O US Treasury bond rate Question 3 10 pts The Benefit Cost Ratio tells us how much we expect to get back for every dollar invested in a project True False Question 4 10 pts Every project a company undertakes must use the same discount rate. True False > Question 5 10 pts The discount rate is correlated with the of a project. guranteed results risk O upront costs Question 6 10 pts Once a discount rate is set for a project during the planning process, it can never change. True False D Question 7 10 pts For a project to be acceptable, the Net Present Value must be: O equal to 0. less than 0. O greater than 10. greater than 0. Question 8 10 pts Why would senior management of a corporation reject one of its average-risk projects from the possible reasons below? The project's internal rate of return is higher than its discount rate. The project has a Net Present Value greater than 0. The project's expected return is less than the corporation's Weighted Average Cost of Capital Question 9 10 pts Upfront cash outflows for a project in Year O are: the future value of the cash flows in a project's last year. a their present value already. always excluded from a capital investment plan. Question 10 10 pts If an investor takes on high risk with an investment, the investor should use a discount rate to value the investment. (Please select the answer that best fills in the blank.) high low negative
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