1. When will you be indifferent between two mutually exclusive projects of similar size?
When the time period of the projects are equal
When both projects have only cash inflows following the initial cash outflow
When the required return on the projects is equal to the crossover discount rate
When both projects have IRR's that exceed the crossover discount rate
2. Which of the following investment criteria takes the time value of money into consideration?
Profitability index and net present value only
Internal rate of return and net present value only
Profitability index, internal rate of return, and net present value
Net present value only