1. 		When capital is readily available to corporations at reasonable cost
   		When capital is available to corporations at medium to high cost
   		Only when corporation are making capital budgeting decisions
   		Under conditions of capital rationing

QUESTION 2

1. The NPV is superior to the IRR because

   		Business professionals prefer to use it over the IRR
   		The NPV is consistent with value maximization while sometimes the IRR is not
   		The NPV is much easier to calculate than the IRR
   		The IRR can be negative when the NPV is positive