Pretest Session 9

The net present value rule states that you should accept a project if its net

present value________

The length of time a firm must wait to recoup the money it has invested in a project is called the _______ period

A project's average net income divided by its average book value is referred to as the project's average __________ return

If a firm accepts Project A it will not be feasible to also accept Project B because both projects would require the simultaneous and exclusive use of the same piece of machinery. These projects are considered to be ________ exclusive

The present value of an investment's future cash flows divided by the initial cost of the investment is called the _____________ index

A project has cash flows of –$148,400, $42,500, $87,300, and $43,200 for Years 0 to 3, respectively. The required rate of return is 11 percent. Based on the internal rate of return of 8.03 percent for this project, you should ______ the project.

The discount rate which causes the net present value of a project to equal zero is defined as the ________ rate of return (IRR)

A project has an initial cash outflow of $200 and produces cash inflows of $50, $60, $70, and $200 for Years 1 through 4, respectively. What is the NPV at a discount rate of 10 percent? ____ (two numbers in decimal notation)