1. Which of the following will decrease the net present value of a project? I. moving each of the cash inflows forward to a sooner time period II. increasing the required discount rate III. increasing the amount of the final cash inflow IV. decreasing the project's initial cost at time zero

2.Which of the following is/are the advantage(s) of the discounted payback method over regular payback method of project analysis?

I. ease of use

II. liquidity bias

III. the consideration of time value of money

IV. works well for research and development projects

3. Which of the following statements related to payback and discounted payback is/are correct?

I. Discounted payback is used more frequently in business than is payback.

II. Discounted payback is biased towards long-term projects while payback is biased towards short-term projects.

III. Payback is a better method of analysis than is discounted payback because the former considers the time value of money of the cash flows.