You are given a job to make a decision on project X, which is composed of three independent projects A, B, and C which have NPVs of + $70, -$40 and + $100, respectively. How would you go about making the decision about whether to accept or reject the project?

	A.	Accept the firm's joint project as it has a positive NPV
	B.	Reject the joint project
	C.	Break up the project into its components: accept A and C and reject B
	D.	None of the above

1. Which of the following statements regarding the net present value rule and the rate of return rule is not true?

   	A.	Accept a project if NPV > cost of investment
   	B.	Accept a project if NPV is positive
   	C.	Accept a project if return on investment exceeds the rate of return on an equivalent investment in the financial market
   	D.	Reject a project if NPV is negative

Suppose the current price of gold is $650 per ounce. The price of gold is expected to grow at 5 % per year for foreseeable future. If the appropriate discount rate is 8%, the present value of gold is:

	A.	Less than $650 per ounce
	B.	Greater than $650 per ounce
	C.	$650 per ounce
	D.	None of the above