When evaluating a project, a firm's managers should select projects whose cash flows: exceed some target cash flow level set by management. have the lowest NPVs after discounting cash flows by the project's capital cost. result in a return that exceeds the cost of funds to finance the project. are subject to less risk than competing projects. produce higher returns than the firm's average cost of capital. When evaluating an investment for a firm with multiple divisions that each have different risk, use the rate associated with the least risky division. use the average rate for the firm as a whole. use the rate associated with the division most closely related to the new investment. use the rate associated with the most risky division. Compute the simple interest earned on a 1-year $200 deposit that earns 6% per year. $ 200 $ 120 $ 6 $ 12 $ 60