1. If a firm wishes to undertake a project that is not a similar risk project, what is the best method by which to estimate the projects beta? 2. Which of the following consider the time value of money in their computation? i. IRR, ii. return on assets, iii. Profitability index, iv. Payback period.

3. which of the following are ways that inflation impacts the capital budgeting process? i. Inflation influences future expected cashflows. ii. Inflation is reflected in the companys nominal discount rate? iii. CCA tax shield is in real dollars. iv. CCA tax shield is in nominal dollars.