1. The Net Present Value method of evaluating projects is consistent with

a. the maximization of earnings per share

b. the maximization of net income

c. the maximization of shareholder wealth

d. the minimization of risk

2. The reinvestment assumption using the Internal Rate of Return method is that:

a. intermediate cash flows are reinvested at the inflation rate

b. intermediate cash flows are reinvested at the required rate of return.

c. intermediate cash flows are reinvested at the modified internal rate of return

d. intermediate cash flows are reinvested at the internal rate of return