Question $7$

$0\mathrm{.}5$ pts

If the net present value of a project is zero based on a discount rate of $16\%,$ then the internal rate of return is:

equal to $16\%.$

less than $16\%.$

greater than $16\%.$

cannot be determined from this data.

Question $8$

$0\mathrm{.}5$ pts

A project's net present value, ignoring income taxes, is affected by:

the net book value of an asset that is replaced.

the depreciation on an asset that is replaced.

the depreciation to be taken on assets used directly on the project.

proceeds from the sale of an asset that is replaced.