Excel File Edit View Insert Format Tools Data Window Help 6 8 81% Tue 5:27 PM Q OE AutoSave . OFF FIN3504_Midterm2 Home Insert Draw Page Layout Formulas Data Review View Developer Tell me Share Comments X AA 9 Wrap Text v General Insert v Times New Roman 11 Ex Delete Paste BIUV A Merge & Center v $ Conditional Format Cell Sort & Find & Analyze Sensitivity Formatting as Table Styles Format Filter Select Data * Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates Check for Updates H1 Jx C D E G H M 3. The internal rate of return is defined as the: Maximum rate of return a firm expects to earn on a project. Discount rate which causes the net present value of a project to equal zero. Rate of return a project will generate if the project in financed solely with internal funds. Discount rate that equates the net cash inflows of a project to zero. Discount rate that causes the profitability index for a project to equal zero. 4. Which one of the following methods of analysis provides the best information on whether a project creates value for shareholders? Discounted Payback period Internal rate of return Net present value Average accounting return Profitability index 5. G & L Plastic Molders spent $73,000 last week repairing a machine. This week the company is trying to decide if the machine could be better utilized if they assigned it a proposed project. Should the $73,000 be included in the analysis? Yes No Not Sure Exam #2 Question #1 Question #2 Question #3 Question #4 Question #5 + Ready 17 Accessibility: Good to go - + 106% 2,133 29 20 O W J