1. Given the following four projects and their cash flows, calculate the discounted payback period with a 5% discount rate. What do you notice about the payback period as the discount rate rises? Explain this relationship.

Cash Flow	A	B	C	D
Cost	$ 10,000	$ 25,000	$ 45,000	$ 1,000,000
Cash flow year 1	$ 4,000	$ 2,000	$ 10,000	$ 40,000
Cash flow year 2	$ 4,000	$ 8,000	$ 15,000	$ 30,000
Cash flow year 3	$ 4,000	$ 14,000	$ 20,000	$ 20,000
Cash flow year 4	$ 4,000	$ 20,000	$ 20,000	$ 10,000
Cash flow year 5	$ 4,000	$ 26,000	$ 15,000	$ -
Cash flow year 6	$ 4,000	$ 32,000	$ 10,000	$ -

2, What is the IRR of the following set of cash flows?

Year	Cash Flow
0	-4,000
1	1,500
2	2,100
3	2,900

3. For the cash flows in the previous problem, what is the NPV at a discount rate of zero percent? What if the discount rate is 10%? If it is 20%? If it is 30%?