16.Time value of money principles are applicable to which of the following types of business

16.Time value of money principles are applicable to which of the following types of business problems:
I. Evaluation of business investments
II. Working capital management
III. Financing decisions
a.I & II
b.I & III
c.II & III
d.I, II & III
17.Consider the following three mutually exclusive projects:
Project
IRR
A
9%
B
10%
C
11%
Which project(s) should be accepted according to the IRR rule if the hurdle rate is 9%?
a.Project A
b.Projects B & C
c.Projects A, B & C
d.Project C
18.Which of the following statements regarding the payback method is false?
a.A weakness of the payback method is that it disregards cash flows after the payback period.
b.The payback method is not consistent with time value of money concepts.
c.The payback method may select projects that decrease, rather than increase, shareholder wealth.
d.If there are competing projects, the payback method selects the project with the largest payback period