$1)$ Which of the following are given as steps for using the NPV rule?

Forecast cash flows

Determine the appropriate discount rate

Find future value of all the previous cash flows

Calculate the GDP rate

$2)$ Calculate the NPV of a project with a discount rate of $8\%$ and these cash flows:

Period $0$: $-1000$

Period $1$: $718$

Period $2$: $313$

Period $3$: $215$

Round to the nearest cent.

$3)$ Which of the following statements are true about the payback rule? Select all true statements.

It measures the amount of value the project adds to the firm.

Projects whose cash flows are received sooner will more likely be accepted.

It will always agree with the NPV rule.

You do not need to know the discount rate to calculate it$.$

$4)$ Calculate the payback period of a project with these cash flows:

Period $0$: $-1000$

Period $1$: $714$

Period $2$: $441$

Period $3$: $250$

Enter your answer in years and round to the nearest one$-$hundredth of a year.

$5)$ Which of the following statements is true about using the internal rate of return

$($IRR$)?$

There can only be one IRR.

The decison rule using IRR is the same for both conventional and non$-$conventional cash flows.

You need the cost of capital to calculate the IRR.

You need to know the cost of capital to make a conclusion with IRR.

$6)$Compute the internal rate of return for the following cash flows:

Period $0$: $-1200$

Period $1$: $930$

Period $2$: $390$

Period $3$: $150$

Enter your answer in percent and round to the nearest one$-$hundredth of a percent. Do not include the percent sign $(\%).$

$7)$ When considering both NPV and IRR, which statement is true with regards to selecting a project?

You should only choose a project if both the NPV and the IRR are higher than those of the alternative project.

You should always choose the project with the higher IRR.

You should choose the project with the higher IRR even if it has the lower NPV$.$

You should choose the project with the higher NPV even if it has the lower IRR.

$8)$ In what circumstance is the profitability index helpful?

When there are multiple IRRs

When the capital budget is less than the total initial costs of all positive NPV independent projects

When the capital budget is less than the total initial costs of all possible projects $($regardless of NPV$)$

When the capital budget is less than the NPV of all positive NPV independent projects

$9)$Find the profitability index of a project with the following cash flows using a discount rate of $4\%$:

Period $0$: $-1000$

Period $1$: $725$

Period $2$: $322$

Period $3$: $265$

Round your answer to the nearest one$-$hundredth.

$10)$ Machinery costs $$1$ million today and $$100,000$ per year to operate. It lasts for $16$ years. What is the equivalent annual annuity if the discount rate is $9\%?$

Enter your answer in dollars and round to the nearest cent $($one$-$hundredth$).$ Do not include the dollar sign $($$$).$ Do remember to include the negative sign!