QUESTION 4 A positive net present value indicates: The investment's return is less than the investor's discount rate and indicates that the project will lose money over its life. The investment should be rejected. The investment is breaking even, so the investor is indifferent to undertaking the project. The investment's return is greater than the investor's discount rate, and the investment should potentially be undertaken, pending further analysis. QUESTION 5 Compounding is adjusting the value of money we are supposed to receive in the future, to what it would actually be worth today. True False QUESTION 6 With regard to Internal rate of return: It is the actual rate of return for an investment with proper accounting for time value of money. O It is the discount rate that would make the net present value of an investment equal to zero. The higher an investment's internal rate of return, the better. All of the above