QUESTION 3 Which of the following statements about investment criteria are TRUE (select all correct answers): The NPV is an unreliable investment criteria when capital is rationed. The EAC is a reliable investment criteria so long as the investments are not mutually exclusive The IRR is an unreliable investment criteria when the cash flows change sign more than once. The IRR is a useful way to communicate the return of an investment. The profitability index (PI) is an unreliable investment criteria when the projects differ in scale. QUESTION 4 Which of the following statements about interest rates are TRUE (select all correct answers): The annual percentage rate (APR) includes the effect of compounding. The effective annual rate (EAR) is never less than the annual percentage rate (APR). Interest rates are always quoted as effective annual rates (EARS). The annual percentage rate (APR) is always less than the effective annual rate (EAR). The effective annual rate (EAR) indicates the amount of interest that will be earned at the end of one year. Click Sa and Submit to save and submit. Click Save All Answers to save all answers