You are viewing a graph that plots the NPVs of a project to various discount rates that could be applied to the project's cash flows

A project's average net income divided by its average book value is referred to as the project's average:    A.  net present value. B.  internal rate of return. C.  accounting return. D.  profitability index. E.  payback period. Refer to section 9.4

6.

The internal rate of return is defined as the:    A.  maximum rate of return a firm expects to earn on a project. B.  rate of return a project will generate if the project in financed solely with internal funds. C.  discount rate that equates the net cash inflows of a project to zero. D.  discount rate which causes the net present value of a project to equal zero. E.  discount rate that causes the profitability index for a project to equal zero. Refer to section 9.5

7.	You are viewing a graph that plots the NPVs of a project to various discount rates that could be applied to the project's cash flows. What is the name given to this graph?    A.  project tract B.  projected risk profile C.  NPV profile D.  NPV route E.  present value sequence Refer to section 9.5

8.

There are two distinct discount rates at which a particular project will have a zero net present value. In this situation, the project is said to:    A.  have two net present value profiles. B.  have operational ambiguity. C.  create a mutually exclusive investment decision. D.  produce multiple economies of scale. E.  have multiple rates of return. Refer to section 9.5