Which of the following five statements are correct?

The effective annual rate (EAR) for a loan with a stated APR of 8% compounded monthly is about 8.3%.

Fundamentally, interest rates are determined by the Federal Reserve (central bank).

The rate of growth of your purchasing power is determined by the nominal interest rate.

Real interest rates indicate the rate at which your money will grow if invested for a certain period.

The investor's opportunity cost of capital is the best available expected return offered in the market on an investment of comparable risk and term of the cash flows being discounted.

Which of the following five statements are correct?

When the risks of two projects are different, only the NPV rule will give a reliable answer.

When the risks of two projects are different, only the IRR rule will give a reliable answer.

The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital.

The profitability index can can be easily adapted for determining the correct investment decisions when multiple resource constraints exist.

You are trying to decide between three mutually exclusive investment opportunities. The most appropriate tool for identifying the correct decision is the profitability index.