3. A project has an initial cost of $1,500. The cash inflows are $900, $2,200, $3,600, and $4,100 over the next four years, respectively. What is the payback period? What is the discounted payback period if your required return is 12%? Suppose you have somehow decided on an appropriate payback of 1 year, should you accept this project? 4. Suppose we have a strip-mining project that costs $5,000 initially. Our cash flow n the first year will be $10,000. In the second year, the mine will be depleted, and we have to spend $8,000 to restore the terrain. The required return is 10% Should you use IRR rule or NPV to make decisions? Should this project be accepted? (Hint: nonconventional cash flows) 5. Net present value: A. is. the best method of analyzing mutually exclusive projects. B. is less useful than the internal rate of return when comparing projects with nonconventional cash flows. C. is the easiest method of evaluation for non-financial managers to use D. is less useful than the profitability index when comparing mutually exclusive projects