Question 1 (4 points) The following are measures used by firms when making capital budgeting decisions except: Payback period Internal rate of return O P/E ratio 1. Net present value Question 2 (3 points) A project is considered acceptable if it has a positive NPV 6 True False Question 3 (4 points) Assume a project has normal (conventional) cash flows (1.e., initial cash flow is negative, and all other cash flows are positive). Which of the following statements is most correct? All else equal, a project's IRR increases as the required rate of return declines. All else equal, a project's IRR increases as the required rate of return increases All else equal, a project's NPV increases as the required rate of return declines. None of the above Question 4 (5 points) 1. Jack Welch bought a bond at $980 and sold it for $ 1001 after a year. He received a coupon payment of $ 20 in that year. What is his rate of return on his bond investment