Question: 12. A firm is evaluating a proposal which has an initial investment of 35,000 and has cash flows of 10,000 in year 1, 20,000 in

12. A firm is evaluating a proposal which has an initial investment of 35,000 and has cash flows of 10,000 in year 1, 20,000 in year 2, and 10,000 in year 3. The payback period of the project is
a.
between one and two years.
b.
two years.
c.
one year.
d.
between two and three years.
7. Which of the following statements is true?
a.
Additivity of NPVs is always possible.
b.
Additivity is never possible for NPVs or IRRs.
c.
NPVs are additive.
d.
Additivity of IRRs is always possible.
11.Which of the following is the most popular method of project appraisal
a.
NPV
b.
ARR
c.
Discounted payback
d.
Payback

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