Which of the answer choices are correct?

Graphing the NPVs of mutually exclusive projects over different discount rates helps demonstrate how:

Select one:

a. The incremental IRR varies with changes in the discount rate.

b. Decisions concerning mutually exclusive projects are derived.

c. The duration of a project affects the decision as to which project to accept.

d. The payback period and the initial cash outflow of a project are related.

e. The profitability index and the net present value are related.

You are considering a project with the following data:

Internal rate of return 8.7%

Profitability ratio .98

Net present value -$393

Payback period 2.44 years

Required return 9.5%

Which one of the following is correct given this information?

Select one:

a. The discount rate used in computing the net present value must have been less than 8.7%.

b. The discounted payback period will have to be less than 2.44 years.

c. The discount rate used to compute the profitability ratio was equal to the internal rate of return.

d. This project should be accepted based on the profitability ratio.

e. This project should be rejected based on the internal rate of return.

All else equal, the payback period for a project will decrease whenever the:

Select one:

a. Initial cost increases.

b. Required return for a project increases.

c. Assigned discount rate decreases.

d. Cash inflows are moved earlier in time.

e. Duration of a project is lengthened.