$2)$ In net present value analysis, the minimum desired rate of return for an investment project depends on the of a proposed project. A$)$ expected return B$)$ desired return C$)$ risk D$)$ payback period $3)$ The higher the risk of an investment project, the for the project. A$)$ lower the minimum desired rate of return B$)$ higher the minimum desired rate of return C$)$ lower the expected rate of return D$)$ higher the expected rate of return $4)$ The net present value method computes the present value of all using a minimum desired rate of return. A$)$ expected future cash inflows B$)$ expected future cash outflows C$)$ expected future cash inflows and expected future cash outflows D$)$ past cash inflows $5)$ If the net present value of an investment project is positive, then the project is present value of an investment project is negative, then the project is A$)$ ignored; accepted B$)$ desirable; undesirable C$)$ unacceptable; acceptable D$)$ rejected; accepted $6)$ Accepting a project with a NPV makes the firm worse off financially because the cost of the investment exceeds the A$)$ positive; present value of future benefits B$)$ negative; present value of future cash flows C$)$ negative; present value of present cash flows D$)$ positive; present value of present cash flows $7)$ Assume the net present value method is used to evaluate investment opportunities. A manager is faced with several investments, but only has funding for one investment. Which investment should be chosen? A$)$ the investment with the lowest net present value B$)$ the investment with a net present value equal to zero C$)$ the investment with a negative net present value D$)$ the investment with the largest net present value $8)$ When evaluating an investment project, the higher the minimum desired rate of return, the the present value of each cash inflow. A$)$ higher; present B$)$ higher; future C$)$ lower; present D$)$ lower; future