The net present value: is equal to the initial investment when the internal rate of return is equal to the required return.   is unaffected by the timing of an investment's cash flows.   ignores cash flows that are distant in the future.   decreases as the required rate of return increases.

An investment with a positive total cash flow will always outperform an investment that shows negative cash flow in the first years of operation. A.   True B.   False

b. Disregard the assumptions in Part a. What is the depreciable basis? What are the annual depreciation expenses? c. Calculate the annual sales revenues and costs (other than depreciation). Why is it important to include inflation when estimating cash flows? d. Calculate annual net operating profit after sales (NOPAT). Then calculate the operating cash flows.

Certainty Equivalent Cash flow (CEQ) is obtained through converting the expected cash flows by a ______ shift of risk. If we discount the CEQ by the time value of money, we will have the present value _______ discounting future cash flow by time and risk discounting factor. Therefore, CEQ is always ______ than the expected cash flow. Find the correct choice to fill the blanks. A. time varying, same as, lowerB. constant, same as, lower C. time varying, higher than, lowerD. constant, same as, higher