1) Russell, Inc. is considering a project that has the following cash flows and WACC. What is the project's discounted payback?

WACC:	10.00%
Year	0	1	2	3
Cash flows	$900	$500	$500	$500

Question 1 options:

A	2.09 years
B	2.29 years
C	1.88 years
D	2.52 years
E	2.78 years

2) All of the following are advantages of the payback method of making capital budgeting decisions EXCEPT __.

	A) Takes into consideration all cash flows
	B) Easy to understand
	C) Gives a rough measure of the riskiness and liquidity of the project
	D) Easy to calculate