1. A project costing $20,000 generates cash inflows of $9,000 annually for the first 3 years, followed by cash outflows of $1,000 annually for 2 years. At most, this project has different IRR(S). a) one b) two c) three d) five 2. Which mutually exclusive project would you select, if both are priced at $1,000 and your required return is 15%: Project A with three annual cash flows of $1,000; or Project B, with 3 years of zero cash flow followed by 3 years of $1,500 annually? a) Project A b) Project B c) You are indifferent since the NPVs are equal. d) Neither project should be selected. 3. Which of the following statements is true for a project with a $20,000 initial cost, cash inflows of $5,800 per year for 6 years, and a discount rate of 15%? a) Its payback period is 3.45 years. b) Its NPV is $2,094. c) Its IRR is 17.85%. d) Its profitability index is 0.104. 4. What is the minimum cash flow that could be received at the end of year 3 to make the following project "acceptable"? Initial cost = $100,000; cash flows at end of years 1 and 2 = $35,000; opportunity cost of capital = 10%. a) $29,494 b) $30,000 c) $39,256 d) $52,250