1. When NPV greater than 0, then:

a. IRR less than 0

b. IRR=0

c. IRR greater than required return

d. IRR greater than 0

e. IRR less than required return

2. Indicate if the following changes in current assets and current liabilities would increase or decrease working capital. Use (+) for increases, and (-) for decreases.

a. Reduce accounts receivable b. Increase accounts payable c. Decrease inventories d. Decrease line of credit owed.