When considering if you should accept a decision, what would tell you the right answer A) Incremental revenue B) Cost of capital C) Net present value D) Internal rate of return of 11% What will happen to the simple accounting rate of return if the salvage value for equipment doubles A) The rate will increase B) The rate will decrease C) The salvage value will increase as a proportional percentage for the rate of return (ie. 10% increase in salvage = 10% for rate) D) Nothing If the initial investment doubles what would be the impact on the simple accounting rate of return A) Increases by 50% B) Increases by 100% (doubles as well) C) Decreases by 50% D) Nothing If a payback period doubles, what likely occurred? A) The investment decreased by 50% B) The net annual cash inflow doubled C) Both the investment and the salvage value increased by 50% D) Incremental revenue and the incremental costs decrease by 50% When will you accept a decision that has a negative net present value A) Never - a negative NPV is not acceptable B) When completing a least cost analysis C) When the cost of capital is greater than the internal rate of return D) Only when the sum of all cashflows is positive (without adjusting for cost of capital)