Question 1: Which one of the following is FALSE for a project whose NPV equals zero?
- The project earns more than the required return.
- The projects cash outflows are equal to the present value of the cash inflows.
- The project will have no impact on firm value.
- The IRR is equal to the required rate of return
Question 2: "Your company is considering a project with the following cash flows: an immediate investment of $105,000 and cash inflows of $30,000 for 5 years (starting in year 1). If your discount rate for this project is 7%, what is the project's NPV?"
- "$228,006 "
- "$18,006 "
- "$123,006 "
- "$45,000 "