3a)

As the director of capital budgeting for Maverick Corporation, you are evaluating two independent projects with the following net cash flows

Year	Project X Cash Flow	Project Z Cash Flow
0	-$100,000	-$100,000
1	50,000	10,000
2	40,000	30,000
3	30,000	40,000
4	10,000	60,000

If Mavericks cost of capital is 8%, which project(s) would you choose?

A) Project X, since it has the higher NPV B) Neither project C) Project Z, since it has the higher NPV D) Both, Since they have positive NPVsL

3b)

Dividends are the only means by which firms can distribute cash to shareholders.

A) True B) False

3c)

For a firm that makes heavy use of float, being able to forecast its collections and disbursements check clearings is essential.

A) True

B) False