5. If you are evaluating a project that has a cost of capital of 12% and your analysis results in a negative NPV, which of the following statements is true?

Question 5 options:

The IRR is higher than 12%.

There is no relationship between the IRR and the NPV.

The IRR is lower than 12%.

The IRR is exactly equal to 12%.

6. You wish to have $1,500,000 by the age of 60 (30 years from now). If you can earn 8% interest on your investments, how much do you need to save per month, in order to achieve your goal?

Question 6 options:

$409.88

$1,006.47

$45,332.49

$822.39

7. You decide you can afford house payments (principle and interest) of $900 per month. Given an annual rate of 5.5% for a 30 year loan, how much will you be able to borrow?

Question 7 options:

$25,172.21

$158,509.59

$324,000.00

$65,191.93

12. A company's 'bottom line' or net income decreased. Which of the following statements is most correct?

Question 12 options:

	Either sales decreased, expenses increased, or both may have happened.
	The only possible cause is that sales decreased.
	Either sales increased, expenses decreased, or both may have happened.
	The only possible cause is that expenses increased.