3. Which of the following projects should you turn down?

	The project IRR is 14% and your requirement is that projects meet a 9% threshold.
	The initial investment is $10mm and it produces 4 years of cash flows of $3mm per year. Your cost of capital is 9%.
	The IRR is only 3%, but it has a positive NPV.
	The project has a positive NPV of only $1

9. Assume Elon Musk wants to consider building a new motorcycle factory and is deciding between California, Mexico, and Texas. We would refer to these project options as:

	operating
	dependent
	independent
	extraordinary
	mutually exclusive

10. When evaluating a project, the best metrics to use are:

	NPV and payback period
	FASB and PI
	SVA and NRR
	Independent and exclusive
	NPV and IRR

11. A capital expenditure is:

	an expenditure that is greater than 5% of revenue.
	any significant expenditure by a company.
	an outlay of funds for a project that produces benefits that last for greater than one year.
	equal to property plant and equipment.