1. If the project’s internal rate of return is greater than or equal to zero the project should always be accepted.

True

False

2. The project’s incremental cash flows comprise of changes in operating cash flows, which one:

A) Changes in revenues and long-term debts

B) Change in revenues and expenses

C) Change in revenue and tax consideration

D) Changes in operating cash flows and changes in investment cash flows

3. The project’s A and B with the same risk level but different cash flow . Which of the two projects will be accepted.

A) Project A with higher IRR than B

B) Project B with shorter Payback period than A

C) Project B with higher NPV than A

D) Project A with longer Payback period but more cash flows than B