All else equal, the net present value using real cash flows and a real rate must __________ the net present value using nominal cash flows and a nominal rate.

be greater than or less than
		equal
		be greater than
		be less than

QUESTION 18

When evaluating projects with unequal lives (time horizons), financial managers should use:

		Payback period
		IRR
		NPV
		Equivalent annual cost

QUESTION 19

When setting the bid price, financial manager should determine the price that results in:

		NPV equal to 0
		Net income equal to 0
		Taxes equal to 0
		IRR equal to 0