Which of the following statements about NPV and IRR is least accurate?

	For independent projects, if the IRR is greater than the cost of capital, the firm should undertake the project.
	The IRR assumes that all cash flows are reinvested at the cost of capital.
	For mutually exclusive projects, the firm should accept the one with the highest positive NPV.

If the projects NPV is negative, the cost of capital is most likely?

	greater than the projects IRR.
	less than the projects IRR.
	equal to the projects IRR.

Consider the following statements:

Statement 1: In post-audit, actual results are compared to planned or predicted results, and any differences must be explained.

Statement 2: There is a specific department responsible for generating all investment ideas.

Which of the following is most likely?

	Only one statement is correct.
	Both statements are incorrect.
	Both statements are correct.

Which of the following is least accurate regarding post-auditing?

	It helps highlight systematic errors.
	It helps organize the profitable proposals into a coordinated whole that fits within the companys overall strategies.
	It helps improve business operations.