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TOOS Help All changes saved in Drive mal text - Calibri 11 - BIUA E - E 1EE. CORPORATE FINANCE 1201_FIN3302 - Assessment #3 -

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TOOS Help All changes saved in Drive mal text - Calibri 11 - BIUA E - E 1EE. CORPORATE FINANCE 1201_FIN3302 - Assessment #3 - Winter 2020 Page 6 of 10 Question #2: When calculating the investment criteria of a new project, you calculate the Profitability Index as 0.85. What can you conclude based upon this result? A. The required rate of return is greater than IRR B. The required rate of return is less than IRR C. NPV = 0 D. NPV> Question 13: When calculating the internal rate of return for a new project, the solution IRR has two correct answers. Is that possible? A. Never, check your calculations! B. Yes, when cashflows are defined as "conventional C. Yes, when cashflows are defined as "nonconventional D. Yes, when the NPV is equal to 0 Question 114: When calculating the investment criteria or a new project, you calculate the Profitability Index as 0.85. What can you conclude based upon this result? A The required rate of return is greater than IRR B. The required rate of return is less than IRR CNPV=0

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