1. Assuming equal risk and size, when using the payback method would you prefer a project with a payback of 6 or one with a payback of 8?
2. When a project shows a profitability index of 1.5 what does this mean?
3. A project has a net present value of $90,000 and a cost of money of 8%. From this information you can conclude that the internal rate of return is (above or below) 8%?
4. What function do you use in Excel to bring a series of uneven or unequal cash flows back to present?
5. When calculating the present value payback, what function do you use in Excel to bring the individual future yearly cash flows back to present (individually)?