Question 27 3 pts Angie is evaluating a proposed project and wants to answer two questions. First, what is the market value of the project? Second, how much profit will the project produce in relation to its book value? To answer these two questions, Angie should use which one of the following sets of investment analysis methods? net present value and average accounting return net present value and payback profitability index and net present value payback and profitability index internal rate of return and payback Question 28 3 pts Which one of the following is correct concerning the rules related to project analysis? The internal rate of return can lead to faulty decisions if two mutually exclusive projects are of different sizes. The payback method is best used for research and development projects. The net present value method is only applicable if a project has conventional cash flows. You should accept a project only if the profitability index is less than 1.0. The average accounting return considers both the book value and the discount rate of a project. Question 25 3 pts A mutually exclusive investment decision is defined as a situation where: a firm has an exclusive contract to produce a certain product. one firm is the only firm capable of handling a particular project. a firm must decide if it wants to expand into Florida or Georgia, or both. an investment in project A prohibits you from investing in project B. a firm owns the sole supply of a resource needed to manufacture a particular product. Question 26 3 pts A project has a net present value of $2,500 and an initial cash outlay of $2,500. This project's: required return is less than its internal rate of return required return is equal to its internal rate of return profitability index is equal to 1.0. payback period is less than 1 year. profitability Index is less than 1.0