Question 4 1 A payback period that is more than the required period signals an accept decision. O True False Question 5 1 The payback calculation takes the time value of money into account. True O False Question 6 1 NPV and IRR can lead to different decisions in situations where the investment decision involves mutually exclusive choices. True O False Question 7 1 pts The internal rate of return (IRR) is the rate that causes the net present value of a project to exactly equal zero. O True O False Question 8 1 pts The following cash flows relate to a project that you are considering: Initial investment -$300 Year 1 cash flow of $110 Year 2 cash flow $121 Year 3 cash flow $133.10 Assuming that the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project? $0.00 O ($8.58) O $19.79 O $64.10 0 $0.71 You are considering a project that requires an initial investment of $40,000 and will provide cash inflows of $11,000 per year for year one through year five. What is the NPV of this project given a required return of 11.65%. O $1,218 O $1.23 O $567 0 $1,103 0 $1,205 Question 10 1 pts The following relates to a project that you are considering: Project initial investment of $95,000 Year 1 cash flow $21,000 Year 2 cash flow $23,000 Year 3 cash flow $25,000 Year 4 cash flow $27,000 If the rate of return is 8%, calculate the project's Profitability Index. O 1.83 01.03 O 1.53 O 0.53 O 0.83