eluinn.II project at the required return, sum the future values, and calculate the internal rate of return of the two cash flows, you will get the same internal rate of return as the original calculation. If the reinvestmert rate used to calculate the future value is different than the internal rate of return, the internal rate of return calculated for the two cash flows will be different. How would you evaluate this criticism? QUESTIONS AND PROBLEMS 1. Calculating Payback Period and NPV Tri Star, Inc., has the following mutually exclusive projects. PROJECT A -$15,300 YEAR PROJECT B 8,700 7,400 3,100 -$10,700 5,300 4,300 4,800 ppose the company's payback period cutoff is two years. Which of these two projects should be chosen? a. Su b. Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent? ating Payback An investment project provides cash inflows of $915 per year for eight years. What is st is $3,400? What if the initial cost is $4,800? What if it is $7.900? 2 Calculating Payback An invest the project payback period if the initial co ul cash inflows of $4.300, $4,900