Question 5 (1 point) Assume that the opportunity cost of capital is R One rule for deciding whether an investment is profitable is (I) invest if the internal rate of return exceeds R Another rule is (II) invest if the present value is positive, using the interest rate R Assuming that all of the positive cash flows from the investment come after all of the negative cash flows (the default assumption in this course, unless another possibility is specifically mentioned) what is the relationship between these two rules Question 5 options A Rule I makes a favorable recommendation more often than rule II B Rule II makes a favorable recommendation more often than rule I C The two rules always make the same recommendation D Sometimes Rule I makes a more favorable recommendation, but in other cases Rule II makes a more favorable recommendation Question 6 (1 point) Which kind of project typically has the highest present value A Small project with low internal rate of return B Small project with high internal rate of return C Large project with low internal rate of return D Large project with high internal rate of return

Question

Question 5 (1 point) Assume that the opportunity cost of capital is R  One rule for deciding whether an investment is profitable is  (I) invest if the internal rate of return exceeds R  Another rule is  (II) invest if the present value is positive, using the interest rate R  Assuming that all of the positive cash flows from the investment come after all of the negative cash flows (the default assumption in this course, unless another possibility is specifically mentioned)  what is the relationship between these two rules  Question 5 options  A  Rule I makes a favorable recommendation more often than rule II  B  Rule II makes a favorable recommendation more often than rule I  C  The two rules always make the same recommendation  D  Sometimes Rule I makes a more favorable recommendation, but in other cases Rule II makes a more favorable recommendation  Question 6 (1 point) Which kind of project typically has the highest present value  A  Small project with low internal rate of return  B  Small project with high internal rate of return  C  Large project with low internal rate of return  D  Large project with high internal rate of return

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	A. Rule I makes a favorable recommendation more often than rule II.
	B. Rule II makes a favorable recommendation more often than rule I.
	C. The two rules always make the same recommendation.
	D. Sometimes Rule I makes a more favorable recommendation, but in other cases Rule II makes a more favorable recommendation.

	A. Small project with low internal rate of return.
	B. Small project with high internal rate of return.
	C. Large project with low internal rate of return.
	D. Large project with high internal rate of return.

Question

Question 5 (1 point) Assume that the opportunity cost of capital is R. One rule for deciding whether an investment is profitable is: (I) invest

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