Sergio is the CFO of Garcia Industries Inc. Gllis considering a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $9,000 in the three years over which the project will produce cash flows. If the discount rate is 9%, what is the net present value of the project? Select one: O a. Less than $0 O b. Between $0 and $400 O c. Between $400 and $800 O d. More than $800 You buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 11 years. What is the internal rate of return? Select one: O a. 5% O b. 6% O c. 7% O d. More than 7% :: Under conditions where a firm uses capital rationing, Select one: O A. it may reject some investment projects expected to create value. O B. it has excess funds available for financing all new investment projects. O C. it cannot use capital budgeting decision rules to evaluate projects. O D. it will not be able to create any shareholder value. In the event that the internal rate of return (IRR) for an investment project is positive, the project's net present value (NPV) Select one: O A. will be negative. O B. will be positive. O C. will equal the internal rate of return. O D. cannot be determined without additional information, You require an IRR of 14% to accept a project. If the project will yield $12,000 per year for 10 years, what is the maximum amount that you would be willing to invest in the project? Select one: O a. Less than $50,000 O b. More than $50,000 and less than $60,000 O c. More than $60,000 and less than $70,000 O d. More than $70,000