When evaluating a project, the most reliable decision making rules are the NPV and IRR. However, we have learned that NPV rule is more reliable than the IRR because of a few special cases in which the IRR rule gives an incorrect answer. What are those special cases? 1. The firm is evaluating several mutually exclusive projects 2. When the NPV of a project is equal to 0 3. The project has non-normal cash flows 4. When the project involves aliens Select one: a. 1 and 3 only b. 1, 2 and 3. c. 1 and 2 only d all of the above e 2 and 4 only. page The Alpha Centauri Dance Club is evaluating a project based on the following estimated cash flows: 0 1 2 3 4 -$25969 $13,000 $15,000 $9,000 $17,000 A discount rate of 8% is used to evaluate all the companies potential projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year. What is the Discounted Payback of the project shown above ? Select one a. 4.00-years b. 3.25 years 2.15 years d. 2.33 years e: 1.10 years The Alpha Centauri Dance Club is evaluating a project based on the following estimated cash flows: 0 1 2 3 4 -$56000 $13,000 $16,000 $15,000 $24,000 A discount rate of 8% is used to evaluate all the companies potential projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year. What is the Net Present Value of the project shown above ? Select one: -754 b-478 OC-610 d-939 e-697 MacBook Air doo El BO F3 *** F2 ODA F F7 19 A * # 3 $ 4 % 5 2 6 & 7 8 9