Question 10 In a case where two projects are not mutually exclusive and have returns exceeding the cost of capital, the firm should a) Pursue both projects Ob) Pursue the project with the highest rate of return Oc) Pursue neither project Od) We do not have enough information to decide. Question 11 This method uses a discounted cash flow method to identify the discount rate where the present value of cash flows is zero. a) Payback method Ob) Net present value c) Internal rate of return d) None of these Question 12 As the cost of capital increases, the number of attractive investment opportunities a) Increases because the NPV of potential projects increase b) Decreases because the NPV of potential projects decrease c) The cost of capital does not impact the projects a company should undertake d) Increases because it becomes easier to identify good projects