1. Why are there multiple ways to evaluate a project?
2. When you have conflicting answers, which method dominates and should be used?
3. Which method is more likely to be used by small, new, or private companies? Why?
4. Which method has the longest history and is thought to be the easiest to calculate?
5. Which method returns its answer in percentage form?
6. Assuming equal risk and size, when using the payback method would you prefer a project with a payback of 6 or one with a payback of 8?
7. When a project shows a profitability index of 1.5 what does it mean?
8. A project has a net present value of $90,000 and a cost of money of 8%. From this information, you can conclude that the internal rate of return is (above or below) 8%?
9. What function do you use in Excel to bring a series of uneven or unequal cash flows to the present?
10. When calculating the present value payback, what function do you use in Excel to bring the individual future yearly to the present (individually)?