$1.$the interest rate that makes NPV equal to zero when it is used as the discount rate$*$ NPV$*$ PI$*$ IRR $($Internal Rate of Return$)*$ Pay back rule$2.$When NPV is greater than $0,$ the PI will be $($use the profitability and NPV relations$)*$ less than $1*$ greater than zero$*$ greater than one$*$ less than zero$3.$A firm wants to start a project. A team of financial analysts estimated the following cash flowsSuppose that the discount rate $($interest rate$)$ is $12\%.$ The NPV isyearcash flow$0-$$$100,000155,000243,000345,000*$ $$-11,627\mathrm{.}12*$ $$15,416\mathrm{.}59*$ $$115,416\mathrm{.}59*$ $$10,206\mathrm{.}14$A firm wants to start a project. A team of financial analysts estimated the following cash flowsyearcash flow$0-$$$100,000155,000243,000345,000$Suppose that the discount rate $($interest rate$)$ is $12\%.$ According to the calculation of NPV we should$*$ undertake the project$*$ not undertake the project$*$ we can not decide because we do not have enough information$*$ undertake the project in the short run and do not under take it in the longA firm wants to start a project. A team of financial analysts estimated the following cash flowsSuppose that the discount rate $($interest rate$)$ is $12\%.$ The NPV isyearcash flow$0-$$$100,000155,000243,000345,000$The pay back period is$*1\mathrm{.}04$ years$*2\mathrm{.}04$ years$*3\mathrm{.}04$ years.$*$ We cannot find it$5.$A firm wants to start a project. A team of financial analysts estimated the following cash flowsyearcash flow$0-$$$100,000155,000243,000345,000$Based on your calcification of the pay back period and if the cut off point is $2$ years, the project should$*$ Can not decide because we do not have enough information$*$ not undertake the project in the short run but undertake the project in the long run$*$ Undertake the project$*$ Not undertake the project$6.$A firm wants to start a project. A team of financial analysts estimated the following yearcash flow$0-$$$100,000155,000243,000345,000$Suppose that the discount rate $($interest rate$)$ is $12\%.$ Based on your calculation of PI$,$ the project should$*$ Be undertaken$*$ Be undertaken in the long run not in the short run$*$ Not be undertaken$*$ Be undertaken in the short run not in the long runA firm wants to start a project. A team of financial analysts estimated the following yearcash flow$0-$$$100,000155,000243,000345,000$Suppose that the discount rate $($interest rate$)$ is $12\%.$ The profitability index $($PI$)$ is$-1\mathrm{.}15-2\mathrm{.}15-0\mathrm{.}87-15,416\mathrm{.}59$