Question 4 Not yet answered The net present value (NPV) method is a better method of evaluation than the internal rate of return (IRR) method because NPV Points out of 1 P Flag question Select one: O A. assumes cash flows are reinvested at the project's internal rate of return. O B. concentrates on the liquidity associated with the investment. O C. assumes cash flows are reinvested at the firm's cost of capital O D. is a more liberal method of analyzing investment proposals. Question 5 Not yet answered Best Ball Inc. has the following investment opportunities: 1. Machine A requires an initial investment of $10,000 and is projected to realize cash inflows of $4,000 in year 1. $6,000 in year 2, and $3,000 in year 3. II. Machine B requires an initial investment of $16,000 and is projected to realize cash inflows of $9,000 in year 1. $6,000 in year 2, and $8,000 in year 3. Best Ball Inc. uses a hurdle rate of 15%. What is the profitability index of an investment in Machine B? Points out of 1 P Flag question Select one: O A. 0.93 O B.1.10 O C. 1.34 O D. 1.53 Next page