1. Which of the following comes closest to the net present value (NPV) of a project that requires an initial investment of $800 and produces a single cash flow of $1,200 at the end of year 4 if the required rate of return is 5%? A. $101.22 B. $125.46 C. $167.67 D. $187.24 2. Which of the following state is true regarding the special treatments in capital budgeting?

A. Sunk costs should not be included in the decision making process.

B. Salvage value need to be taxed and then included in the final cash flow of a project.

C. If a project can be repeated, we need to take not only cash flows but also time spans into consideration.

D. All of the above are correct.

2.Which of the following state is true regarding the special treatments in capital budgeting?

	A.	Sunk costs should not be included in the decision making process.
	B.	Salvage value need to be taxed and then included in the final cash flow of a project.
	C.	If a project can be repeated, we need to take not only cash flows but also time spans into consideration.
		D. All of the above are correct.