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For more course tutorials visit www.tutorialrank.com 1.Which of the following is true regarding Investment Banks? 2. We compute the profitability index of a capital-budgeting proposal by Initial outlay = $1,748.80 3. Project Sigma requires an investment of $1 million and has a NPV of $10. Project Delta requires an investment of $500,000 and has a NPV of $150,000. The projects involve unrelated new product lines. What is your evaluation of these two projects? 4. Which of the following is most likely to occur if a firm over-invests in net working capital?

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