$7-1$ Under the high expected market value, based on NPV$,$ should the Specialty Guitar Project be accepted? Why?

A$.$ YES, because NPV is greater than zero.

B$.$ YES, because NPV is less than zero.

C$.$ NO$,$ because NPV is greater than zero.

D$.$ NO$,$ because NPV is less than zero.

$7-2$ Under the low expected market value, based on IRR, should the Specialty Guitar Project be accepted? Why?

A$.$ YES, because IRR is greater than zero.

B$.$ YES, because IRR greater than the discount rate.

C$.$ NO$,$ because IRR is less than zero.

D$.$ NO$,$ because IRR is less than the discount rate.

$7-3$ Does the expected market value affect the Payback Period?

A$.$ YES.

B$.$ NO$.$

C$.$ Can't be determined.

$7-4$ Change Keenan's Discount Rate from current $15\%$ to $12\%,$ and observe what happens to the NPV$.$

A$.$ When the discount rate decreases, NPV decreases.

B$.$ When the discount rate decreases, NPV increases.

C$.$ When the discount rate decreases, NPV does not change.