Please describe the process in detail.

11. (lgnore income taxes in this problem.) The Zinger Company is considering an investment that has the following data: Year 1 $8,000 $3,000 4 Investment Cash inflow 2,000 $2,000 $5,000 $4,000 $4,000 The payback period for this investment is: A) 3.0 years 3.5 years. C) 4.0 years. D) 4.5 years. Answer: B 12. Which of the following statements is correct? A) Project X is preferred over Project Y according to the profitability index B) Project Y is preferred over Project Z according to an internal rate of return ranking. C) Project Z is preferred over Project X according to a net present value ranking. D) Project X is preferred over Project Z according to the profitability index. Answer: C 13. Which project has the highest ranking according to the net present value and the profitability index criteria? Net Present Value Profitability Index A) Z B) Y C) X D) Z Answer: D