1. Which one of the following statements is correct?
A. A positive NPV signals a reject decision.
B. Projects should be accepted when the PI is less than one.
C. A payback period that is greater than the required period signals an accept decision.
D. When the IRR exceeds the required return, a project should be accepted.
2. Currently, the bond market requires a return of 11.6 percent on the 10-year bonds issued by Winston Industries. The 11.6 percent is referred to as which one of the following?
A. coupon
B. face value
C. discount rate
D. dirty price