1. If the net present value of a project which costs $10,000 is -$1,000 when the discount rate is 10%, then the:

A. Project's IRR equals 10%.

B. Project's rate of return is greater than 10%.

C. Project's rate of return is less than 10%.

D. project's cash inflows total $9,000.

2. If the IRR for a project is 20%, then the project's NPV would be:

A. Negative at a discount rate of 15%.

B. Positive at a discount rate of 25%.

C. Negative at a discount rate of 25%.

D. Positive at a discount rate of 20%.