1. The Net Present Value of an investment project is determined by using which of the following to discount future cash flows from the project:

   	a.	The market rate of interest
   	b.	The coupon rate on the firms bonds
   	c.	The weighted average cost of capital

2. If a firm accepts a new investment project, it may be required to issue, or float, new bonds and stocks at some cost which are called:

   	a.	Interest costs
   	b.	Investment costs
   	c.	Flotation costs

3. A firm should undertake an investment project if the NPV is:

   		Positive
   		Negative
   		Zero

4. The NPV profile for a project is a curve that shows NPV values assuming different:

   	a.	Risk-free rates of return
   	b.	Weighted average costs of capital
   	c.	Internal rates of return