1. Which of the following terms describes an insurance policy that covers the lives of two people and that is payable only after both of them have died?
(a) A variable life insurance policy
(b) A universal life insurance policy
(c) A split-dollar life insurance policy
(d) A second to die life insurance policy
2. Which one additional benefits would not affect the NPV calculation? Explain why
1. release of working capital
2. resuced stock of work-in-progress
3. increased sales
4. shorter production runs per product line.