1. Which of the following results from a negative cash flow that occurs at the end of a project's life in addition to the initial investment in the project?
a. Shorter payback period for the project
b. Higher return from the investment in the project
c. Lower project terminal value as compared to the cost of the project
d. Negative net cash flow from the project
e. More than one internal rate of return (IRR) of the project
2. A positive cash flow to creditors indicates a firm:
a. paid more cash to its creditors than it received from them for the period.
b. has less debt at the end of the period than it had at the beginning of the period.
c. borrowed more than it repaid for the period.
d. repaid more principal on its loans than it borrowed for the period.