Question 26 We accept projects with a positive NPV because it means that: O all of the options we have recovered all our costs. we are creating wealth for shareholders. the project's expected return exceeds the cost of capital Question 27 All of the following are strengths of NPV EXCEPT: O managers have a preference for using a statistic that is in percent instead of dollars, o it works equally well for independent and mutually exclusive projects. these are all strengths of the NPV statistic It uses a conservative reinvestment rate assumption. Question 28 A project's IRR is the interest rate that: causes the project's NPV to equal zero. O is used to discount cash flows when computing the project's NPV. is used to determine which one of two mutually exclusive projects should be accepted o is used to compute the project's discounted payback period MacBook Pro