1. A project costs $16,000. The estimated annual cash inflows during its 3 year life are $8,000, $7,000 and $6,000 respectively. What will be the pay-back period? a. 2 years b. 2.5 years c. 3 years d. 4 years 2. of a project is the sum of all present values of all cash inflows minus present value of outflows? a. Payback period b. Internal rate of return c. Benefit cost ratio d. Net present value 3. If you have to judge a project from its NPV, you will select the one with the ? a. Highest NPV b. Lowest NPV c. NPV cannot judge the project d. None of the above 4. Capital budgeting is the process of identifying analyzing and selecting investments project whose returns are expected to extend beyond ? a. 3 years b. 2 years c. 1 year d. 6 months