1.You have a project in mind that will be able to meet the strategic objective of your organization. While evaluating the project, you found out that the project would cost $600,000. Since you are introducing a new potential product in the market, you are very hopeful that your expected inflows will be $30,000 per quarter for the first two years and then $90,000 per quarter thereafter. What is the payback period of this project?

a.36 MONTHS

b.38 MONTHS

c.48 MONTHS

d.52 MONTHS

2.Your company can accept one of three possible projects. Project A has a NPV OF $30,000, it will take 5 years to complete and the associated cost will be $10,000. Project B has NPV of $60,000,it will take 3 years to complete and the cost will be $15,000.Project C has NPV of $80,000 and it will take 4 yearscomplete and it will cost $40,000.Based on the information, which project would you pick?

a.They all have the same value

b.PROJECT A

c.PROJECT B

d.PROJECT C

3.Discuss cannibalization

4.Discuss the process of cash flow estimation.