There are four principal decision models for evaluating and selecting investment projects:

	Net present value (NPV)
	Profitability index (PI)
	Internal rate of return (IRR)
	Payback period (PB)

1.) Which criteria assume that the projects net cash flows (NCFs) are reinvested at the projects internal rate of return?

IRR

NPV and PI

IRR and PI

PI and discounted PB

2.) Categorize the following statements whether they characterize the IRR, NPV, PB, or PI decision criteria:

Statement	IRR	NPV	PB	PI
This value is expressed in years, or some portion thereof
If its value is greater than or equal to one, then the project should be accepted
The value is the discount rate or return at which the projects net present value is zero