1) if you believe the price of a stock is going to go lower you will purchase a call

- True or False

2) the IRR is the rate that

a – equals zero

b – makes the npv zero

c – would make the project acceptable

d – none of the above are correct.

3) the MIRR, when the NPV is positive

a – will be greater than the IRR

b – more information is needed

c – will be less than the IRR and greater than the v..

d – will be less than the WACC

4) The par value of a stock has no relation to the market price of that stock

True or False

5) A negative aspect of the IRR is

a – it assumes all cash flows are reinvested at the IRR to the end of the project.

B – when there is more than on change in signs (CF - + + - +) multiple IRR will…

C – both “a” and “b” are correct

D – neither “a” or “b” are correct

6) If the NPV of a project is positive then the project is acceptable and will definitely be completed

True or False

7) If two projects are mutually exclusive and acceptable, then

a – both may be completed

b – neither will be completed

c – only one of the projects will be completed

d – these projects have nothing to with production