1. If a project has a positive NPV, the project IRR will exceed the firm's WACC.
a) True
b) False
2. A firm is considering only 2 projects, both of which have positive a NPV. The firm only has enough capital to invest in one project. The firm should select the project with the lowest NPV.
a) True
b) False
3. The Profitability Index is calculated by summing all of the future estimated cash inflows generated by the project, and dividing that sum by the required investment amount.
a) True
b) False
4. firm has two projects from which it is choosing. The firm should always select the project with the shortest Payback Period.
a) TrueA
b) False