time value of money? 45. Which of the following ignores the a. Net Present Value b. Internal Rate of Return c. Payback Period d. Profitability Index ster Corporation has not yet decided on the required rate of return to use in its capital budgeting. This lack Net Present Value Internal Rate of Return 46. Ams of information will prevent Amster from calculating a No No Yes Yes No Yes No No Yes Yes B) No D) 47. The project profitability index and the internal rate of return: a. Will always result in the same preference ranking for investment projects b. Will sometimes result in different preference rankings for investment projects c. Are less dependable than the payback method in ranking investment projects d. Are less dependable than net present value in ranking investment projects 48. A company has unlimited funds to invest at its discount rate. The company should invest in all projects having: a. An internal rate of return greater than zero b. A net present value greater than zero c. A simple rate of return greater than the discount rate d. A payback period less than the projects estimated life 49. If the net present value of a project is zero based on a discount rate of 16%, then the internal rate of return is a. Equal to 16% b. Less than 16% C. Greater than 16% d. Cannot be determined from this data 50. A preference decision in capital budgeting: a Is concerned with whether a project clears the minimum required rate of return hurdle b. Comes before the screening decision c. Is concerned with determining which of several acceptable alternatives is best d. Involves using market research to determine customer's preferences