CHAPTER 4 QUESTIONS _ 1. We have two projects A and B that each have a cost of $10,000. Project A has cash flows of $3,250, $3,250, $3,510, $3,510. Project B has cash flows of $800, $770, $4,600, and $9,000. The payback is: PROJECT A PAYBACK = 2.797 YEARS; PROJECT B PAYBACK = 3.654 YEARS. TORF __ 2. Using the information from #1, the NPV is $850.52 for A and -1,363.33 for project B. T ORF 3. Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. T OR F