Net Present Value (NPV):

(a) Is equal to the initial investment in a project.

(b) Compares project cost to the discounted value of the project benefits.

(c) Is equal to zero when the discount rate used is less than the IRR.

(d) Requires the firm to set an arbitrary cutoff point for determining whether an investment is a good one or not.

The discount rate on a bond is also called the:

(a) Market required rate of return;

(b) Yield to maturity (YTM)

(c) Discount rate on bonds of similar quality and maturity;

(d) All of the above refer to the prevailing discount rate.