Question: Question 2 (1 point) Which project would you ACCEPT if your discount rate was 1%? O A) Project A OB) Project B OC) Both Project







Question 2 (1 point) Which project would you ACCEPT if your discount rate was 1%? O A) Project A OB) Project B OC) Both Project A and B OD) Neither Project A or B Question 3 (1 point) Which project would you ACCEPT if your discount rate was 5%? O A) Project A OB) Project B OC) Both Project A and B OD) Neither Project A or B Question 4 (1 point) Which project would you ACCEPT if your discount rate was 10%? O A) Project A OB) Project B OC) Both Project A and B O D) Neither Project A or B Question 5 (2 points) What is the highest discount rate in which you can still produce a non-negative NPV for at least one project? Question 6 (1 point) An INDEPENDENT project costs $1,000,000 and will return cash flows of $400,000 for 4 years. If you knew the firm's cost of capital rate (discount rate), which of the following measures would you use to determine whether to clearly ACCEPT or REJECT the project? OA) NPV OB) IRR OC) PI OD) Payback Period OE) All of the above OF) NPV and PI OG) NPV, IRR, and PI H) None of the above Question 7 (1 point) An INDEPENDENT project costs $2,000,000 and will return cash flows of $1,100,000 for 3 years and $100,000 for the 3 years after that. In the seventh year, you will need to upgrade the equipment at a net cost of $1,700,000 (
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