1.) Samsunge Electronics has a required payback period of three years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 4 years and a net present value of $6,800. Project B has an expected payback period of 2 years with a net present value of $28,400. Which projects should be accepted based on the payback decision rule?

options:

	Project A only
	Project B only
	Both A and B
	Neither A nor B

2.) Blue Space X is comparing two mutually exclusive projects A and B. The crossover point is 10% percent. Blue Space X has determined that they should accept project A if the required return is 12 percent. This implies you should:

	always accept project A
	always accept project A if the required return exceeds the crossover rate
	accept project B only when the required return is equal to the crossover rate
	be indifferent to the projects at any discount rate above 10 percent

3.)Southern Beef Exporters is considering a project that has an NPV of $32,600, an IRR of 15.1 percent, and a payback period of 4 years. The required return is 14.5 percent and the required payback period is 3.0 years. Which one of the following statements correctly applies to this project?

options:

	Southern Beef Exporter should accept the project because its NPV is positive.
	Southern Beef Exporter should reject the project because its PB period is larger than the required PB.
	The payback rule will automatically be ignored since both the net present value and the internal rate of return indicate an accept decision
	Southern Beef Exporter should reject the project because the project's IRR is larger than the required rate of return.

4.) You are considering two projects with the following cash flows. Given this information, what is the crossover rate?

Year	Project A	Project B
0	-$135,000	-$165,000
1	46,000	50,000
2	75,000	80,000
3	51,000	110,000

options:

	30.8%
	No IRR
	16%
	34.5%