PLEASE ANSWER ALL 4 MULTIPLE CHOICE QUESTIONS

Which one of the following should not be included in the cash flow time line of a new product? Increase in accounts payable for new product inventory purchases. Reduction in sales for a current product once the new product is introduced. Market value of a machine owned by the firm which will be used to produce the new product. Interest expense associated with new debt issued to finance a new project Increase in accounts receivable needed to finance sales of the new product. DO NOT calculate IRR for projects that are: Conventional Non-conventional Independent Mutually exclusive of cash reported in the section of the statement of cash flows. Long-term investments increased during the year. This is a Use; operating Source; operating Source; investing Use; investing Use; financing Source: financing What is the payback period for the following proposed capital budgeting project? Year 0 1 Cash Flows -1,000,000 200,000 400,000 300,000 500,000 2 3 4 3.2 years 3.4 years 2.8 years 2.8 years 2.2 years