1. Which of the following can result in an increase in firm value?

I. Reducing net capital expenditures on existing assets

II. Increasing the reinvestment rate of the firm

III. Improving operating margins on existing assets

a. I only

b.  I and II only

c. I and III only

d.  II and III only

e. I, II, and III only

f. None of the above

2. How does CFROI differ from the internal rate of return (IRR)?

I. CFROI uses both past and future cash flows to evaluate projects

II. CFROI is a rate of return, while IRR is a percentage

III. CFROI tends to fade toward the cost of capital over time

A. I only

B. II only

C. III only

D. I and II only

E. I and III only

F. I, II, and II