The IRRs from the cash flows for four separate investments are as follows: a. 22% b....

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The IRRs from the cash flows for four separate investments are as follows: a. 22% b. 16% c. 14% d. 25% If the required return for an investor is 19%, which cash flows will have a positive NPV and which will have a negative NPV? 2. (4 points) When a 16% required return is used, the Profitability Index is 1.0. Will the Profitability Index be greater than or less than 1.0 when the required return used to calculate it is: a. 19% b. 13% 3. (4 points) Two investments, A and B, cost the same but have different cash flows. The IRR for Investment A is 24% while the IRR for Investment B is 19%. If a required return of 16% is used, however, the NPVs of the two investment are the same. What is the range of required returns in which: a. You would choose A over B? b. You would choose B over A? The IRRs from the cash flows for four separate investments are as follows: a. 22% b. 16% c. 14% d. 25% If the required return for an investor is 19%, which cash flows will have a positive NPV and which will have a negative NPV? 2. (4 points) When a 16% required return is used, the Profitability Index is 1.0. Will the Profitability Index be greater than or less than 1.0 when the required return used to calculate it is: a. 19% b. 13% 3. (4 points) Two investments, A and B, cost the same but have different cash flows. The IRR for Investment A is 24% while the IRR for Investment B is 19%. If a required return of 16% is used, however, the NPVs of the two investment are the same. What is the range of required returns in which: a. You would choose A over B? b. You would choose B over A?

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