The future cash flows of a stand-alone capital project are: If the firm's cost of capital is 12%, which of the following statements is true?

A) The NPV is > $0 and the IRR is less than 12.5%.
B) The NPV is.
C) The NPV is > $0 and the IRR is approximately 18.5%.
D) The NPV is

At Bling Clothing, the managers and employees regularly interact with each other. They carry out negotiations to ensure that the goals of the organization and the goals of the employees are met. The approach followed by Bling Clothing exemplifies _____.

A) management by exception
B) management by reinforcement
C) management by evaluation
D) management by objectives

Diversifiable risk is:

A) measured by beta.
B) company-specific.
C) the unsystematic risk.
D) Both b & c

Refer to Figure 2.1. The shape of Macroland's production possibility frontier shows

A) increasing opportunity costs.
B) constant opportunity costs.
C) decreasing opportunity costs.
D) random opportunity costs.

Constant marginal costs occur when production of each individual unit costs:

A) less than the previous one.
B) more than the previous one.
C) the same as the previous one.
D) more than the next one.