2. Net present value is calculated by:

a) (Present value of projects future cash inflows) (Present value of the projects cost)

b) (Present value of the projects cost) (Present value of projects future cash inflows)

c) (Present value of the project) (Required return on the investment)

d) (Present value of the projects future cash inflows) (Present value of the projects cost) + (Required return)

3. When should the decision of accepting a project be taken?

a) Only if the net present value of the project is positive.

b) Only if the net present value of the project is negative.

c) Only if the net present value of the project is neither positive nor negative.

d) Both "Only if the net present value of the project is positive" and "Only if the net present value of the project is neither positive nor negative" are correct.

4. The built-in function in Microsoft Excel PV (________) returns a present value for the cash inflows equal to $57,559.70.

a) (12%, 6, 14000)

b) (12%, -6, 14000)

c) (-12%, 6, 14000)

d) (12%, 6, -14000)