To avoid rejecting projects that actually should be accepted, $1.$ intangible benefits should be ignored.

$2.$ conservative estimates of the ignored.

$3.$ into the NPV calculation.

a$)1$

b$)2$ negative, estimate whether the intangible bele benefits and then, if the NPV is of the negative NPV$.$

c$)3$

d$)$ both $2$ and $3$ are correct.

$2.$ Using the profitability index method, the present value of cash inflows for Project Flower is $$88,000$ and the present value of cash inflows of Project Plant is $$48,000.$ If respectively, and Project Plant require initial investments of $$90,000$ and $$40,000,$ a$)$ Project Flower.

b$)$ Project Plant

c$)$ Either project may be accepted

d$)$ Neither project should be accepted.

$3.$ If a company's required rate of return is $10\%$ and, in using the net present value a$)$ prod, a project's net present value is zero, this indicates that the

a$)$ project's rate of return exceeds $10\%.$

c$)$ project's rate of return is less than the rearns a rate of return of $10\%.$

d$)$ project earns a rate of return of $0\%.$

Chapman with a proposal to units. Chapman is currently to sell the company widgets at a price of $$60,000$ for $100,000$ costs are associated with this making these components in its own factory. The following

Direct labour Manufacturing overn

$\backslash$table$[[$Total$],[$manufacturing overhead consist $