QUESTION 2 A major reason why operating cash flow is not equal to net income each year is A. accounting errors. B. depreciation expense. C. tax deductibility of interest expense. D. inflation. 1 points

QUESTION 3 Two mutually exclusive projects are to be evaluated. Project #1 costs $10,000 today and returns $15,000 after one year. Project #2 costs $80,000 now and returns $100,000 after one year. Investors require a 10% return on either project. The best project is __________ because it has the higher __________. A. #1; NPV B. #1; IRR C. #2; NPV D. #2; IRR