1. Comparisons of investment alternatives with different compounding periods should be made based on the:
a) nominal interest rates.
b) quoted interest rates.
c) annual percentage rates (APR).
d) effective annual interest rate
2. In calculating the net present value of a proposed project, the cash flows of the project should include
a) amortization of goodwill
b) interest expenses paid to bondholders
c) extra working capital required by the project
d) dividends paid to shareholders