The relationship between NPV and IRR is such that :
a. both approaches always provide the same ranking of alternatives
b. the IRR of a project is equal to the firm's cost of capital when the NPV of a project is $0
c. if the NPV of a project is negative, then the IRR must be greater than the cost of capital
d. all of the above
e. none of the above
b
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Suppose the star pitcher on a university's baseball team, who is now a sophomore, decides to finish college instead of joining a major league team. In doing this, he is giving up a $40,000 salary for each of the next two years. At an interest rate of 10 percent, the total value of this sacrifice is approximately
a. $46,000 b. $77,777 c. $69,420 d. $80,000 e. $88,000
From the end of 2005 to the end of 2006, the United States ran a deficit of about $309 billion. The debt at the start of this period was about $4,592 billion. Which of the following combinations of inflation and real GDP growth would have allowed the government to run this deficit while keeping the ratio of real GDP to the debt about the same?
a. about 3% inflation and about 2.2% real GDP growth b. about 3% inflation and about 3.2% real GDP growth c. about 3.4% inflation and about 3.3% real GDP growth d. about 3.4% inflation and about 4% real GDP growth
How could you classify the motives of a wealthy widow donating money to an orphanage or a teenager picking up trash in his neighborhood?
a. self-regulation b. government regulation c. taxation d. subsidization