1. The future value of a lump sum of money invested today _______ as the annual rate of return decreases and ______ the fewer years the money remains invested. Assume the money is invested at a fixed annual rate of return and interest is compounded annually.
increases; decreases
increases; increases
decreases; increases
decreases; decreases
2. If a capital investment project has an NPV > $0, then its IRR is ______ the firm's required rate of return (cost of capital).
less than
No answer text provided.
equal to
greater than