The net present value: ignores cash flows that are distant in the future. is equal to the initial investment when the internal rate of return is equal to the required return. method of analysis cannot be applied to mutually exclusive projects. is unaffected by the timing of an investment's cash flows. decreases as the required rate of return increases.

The host of a game show is holding a bag with chips to see what prizes the contestants will play for. five (5) of the chips say “new car” ten (10) of the chips say “new tv” three (3) of the chips say “trip to france” contestant named “patty” reaches into the bag. a. what is the probability of choosing a tv chip? b. what is the probability of choosing a car chip next without replacing the 1st chip? c. are these dependent or independent events?