8. Given the advantages and disadvantages outlined below, which decision criteria (A, B, C, or D) is Payback?

Criteria	Advantage	Disadvantage
A	Easy to understand. Quick computation. May be best option for small-budget projects.	Does not account for all cash flows. Does not account for time value of money.
B	Accounts for all cash flows and provides same accept/reject decision as NPV for conventional cash flows on independent projects.	Cash flows may generate multiple results. Cannot be used to rank mutually exclusive projects. High results may not be best.
C	Accounts for all cash flows as well as the time value of money.	My require a tweak in order to make appropriate choices under budget constraints.
D	Accounts for all cash flows as well as the time value of money. Can be used under budget constraints.	In isolation may lead to improper ordering of projects.

9. Given the advantages and disadvantages outlined below, which decision criteria (A, B, C, or D) is Internal Rate of Return (IRR)?

Criteria	Advantage	Disadvantage
A	Easy to understand. Quick computation. May be best option for small-budget projects.	Does not account for all cash flows. Does not account for time value of money.
B	Accounts for all cash flows and provides same accept/reject decision as NPV for conventional cash flows on independent projects.	Cash flows may generate multiple results. Cannot be used to rank mutually exclusive projects. High results may not be best.
C	Accounts for all cash flows as well as the time value of money.	My require a tweak in order to make appropriate choices under budget constraints.
D	Accounts for all cash flows as well as the time value of money. Can be used under budget constraints.	In isolation may lead to improper ordering of projects.

10. Given the advantages and disadvantages outlined below, which decision criteria (A, B, C, or D) is Profitability Index (PI)?

Criteria	Advantage	Disadvantage
A	Easy to understand. Quick computation. May be best option for small-budget projects.	Does not account for all cash flows. Does not account for time value of money.
B	Accounts for all cash flows and provides same accept/reject decision as NPV for conventional cash flows on independent projects.	Cash flows may generate multiple results. Cannot be used to rank mutually exclusive projects. High results may not be best.
C	Accounts for all cash flows as well as the time value of money.	My require a tweak in order to make appropriate choices under budget constraints.
D	Accounts for all cash flows as well as the time value of money. Can be used under budget constraints.	In isolation may lead to improper ordering of projects.