45 One needs an interest rate to be able to calculate an IRR. A. true b. false 46 One needs an interest rate to be able to calculate an NPV. A. true b. false 47 If an investment has an NPV =0, then a. this means the investor earned no money b. this means the investor earned more than the required rate of return (i.e., cost of capital) c. this means the investor earned less than the required rate of return (i.e., cost of capital) d. this means the investor earned a return just equal to the required rate of return (i.e. the cost of capital rate at which the NPV was calculated) 48 Fill in the Blank: The tax deductibility of expenses _their after tax cost (assume a tax paying firm). a. increases b. decreases c. has no effect on d. has an undetermined effect on e. either increases or decreases, depending on whether it is for a sole proprietorship or a corporation