Please help me to select the right answers. I have done what I think is correct but please check my work and correct my mistakes if needed.

1.Which one of the following methods of analysis is most applicable to those situations where small dollar, short-term, independent projects are evaluated by low level managers on a daily basis?

A.Net present value.

B.Internal rate of return.

C.Accounting rate of return.

D.Payback.

E.Profitability index.

Correct answer is -D

3.The payback period is defined as the length of time it requires for an investment to generate sufficient cash flows to recoup:

A.The required rate of return on the investment.

B.The initial cost of the investment.

C.All of the initial cost plus the ongoing maintenance costs of the fixed assets required by the investment.

D.Both the initial cost of the investment and the amount needed to provide the required rate of return.

E.The future value of the initial cost of the investment.

Correct answer is -B

12.Which one of the following statements is correct concerning the payback period?

A.An investment is acceptable if its calculated payback period is less than some pre-specified period of time.

B.An investment should be accepted if the payback is positive and rejected if it is negative.

C.An investment should be rejected if the payback is positive and accepted if it is negative.

D.An investment is acceptable if its calculated payback period is greater than some pre-specified period of time.

E.An investment should be accepted any time the payback period is less than the discounted payback period, given a positive discount rate.

Correct answer is -A

13.Capital budgeting decisions generally:

A.Have long-term effects on a firm.

B.Are of short-duration.

C.Are easy to revise once implemented.

D.Focus solely on whether or not a particular asset should be purchased.

E.Have minimal effects on a firm's operations.

Correct answer is -A

25.The purchase of new equipment is classified as a _____ decision.

A.Capital structure.

B.Capital budgeting.

C.Capital growth.

D.Working capital.

E.Capital return.

Correct answer is -B

27.The net present value of a project will increase when the:

A.Discount rate increases.

B.Initial investment increases in amount.

C.Cash inflows are received sooner.

D.Estimated salvage value of the equipment is lowered.

E.Tax rate applied to the project's profits is increased.

Correct answer is -C

33.From a finance perspective, discounted payback is considered to be a superior method of analysis as compared to payback. Why then, is discounted payback used less frequently than payback?

A.Discounted payback applies only to long-term projects.

B.Discounted payback is more difficult to compute and explain.

C.Discounted payback is based on net income rather than cash flows.

D.Discounted payback requires knowledge of a project's internal rate of return.

E.Discounted payback is liquidity biased where payback is not.

Correct answer is -B

40.Your firm's CFO presents you with two capital budgeting analyses: one that involves buying a new delivery truck to replace the existing truck and one that involves the purchase of a three-ton metal stamping press to replace the existing press on the plant floor. This is an example of a decision involving _______________.

A.Mutually exclusive projects.

B.Crossover projects.

C.Payback projects.

D.Independent projects.

E.Working capital projects.

Correct answer is -D