1. A proposed project has a negative NPV. Does it mean that the project has a negative IRR? Why or why not? 2. Does including the tax consequences of estimated future cash flow in DCF models likely increase, decrease, decrease, or have no effect on a project's NPV? Explain. 3. List three methods commonly used to adjust for project risk in the Capital budgeting process and discuss why these methods might be appropriate. 4. What are some reasons that may explain the pervasive use of the payback period method to evaluate investment opportunities?