Chapter Six The Analysis of Investment Projects This chapter contains 41 multiple choice problems,20 short problems and 8 longer problems. Multiple Choice 1.The objective of a firm's management is to only undertake the projects that the market value of shareholders'equity. a)decrease b)do not decrease c)change d)do not change Answer:(b) 2.The decision rule that management uses with the net present value is to undertake only those projects with NPV. a)a discounted b)a contingent c)a positive d)negative Answer:(c) 3.The NPV of a project represents the amount by which it is expected to increase a)the break-even point b)capital budgeting c)capital expenditures d)shareholder wealth Answer:(d) 6-16-1 Chapter Six The Analysis of Investment Projects This chapter contains 41 multiple choice problems, 20 short problems and 8 longer problems. Multiple Choice 1. The objective of a firm's management is to only undertake the projects that ________ the market value of shareholders' equity. a) decrease b) do not decrease c) change d) do not change Answer: (b) 2. The decision rule that management uses with the net present value is to undertake only those projects with ________ NPV. a) a discounted b) a contingent c) a positive d) negative Answer: (c) 3. The NPV of a project represents the amount by which it is expected to increase ________. a) the break-even point b) capital budgeting c) capital expenditures d) shareholder wealth Answer: (d)