36. A firm is evaluating two independent projects utilizing the internal rate of return technique. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has an initial investment of $120,000 and cash inflows at the end of each of the next four years of $40,000. The firm should: (HINT - CALCULATE THE IRR FOR EACH PROJECT)

a.accept both if their cost of capital is 15% at the maximum.

b.accept only Z if their cost of capital is 15% at the maximum.

c.accept only X if their cost of capital is 15% at the maximum.

d.reject both if their cost of capital is 12% at the maximum.

37. A firm would accept a project with a net present value of zero because:

a.the project would maintain the wealth of the firm's owner.

b.the project would enhance the wealth of the firm's owners.

c.the return on the project would be zero.