Please see attachment for questions and the answers are multiple choice, please let me know if you have any questions there is only 5 questions.

Question 1 1. Payback, Net Present Value (NPV) and Internal Rate of Return (IRR) are the three classic methods to evaluate a major purchasing decision (a new machine, a building, etc.) of a company.? These decisions are termed Capital Budgeting decisions.? Which of those three methods ignores the time value of money? ? a. payback b. NPV c. IRR d. All of those methods ignore the time value of money - they are concerned with today's cash flow. 2 points (Extra Credit) Question 2 1. A firm is considering a buying a new computer controlled cut-off machine.? It costs $50,000.? It will provide cash flows (profits) of $15,000 for five years.? The payback is: a. 1.5 years b. 3.3 years c. 5 years d. 10 years 2 points (Extra Credit) Question 3 1. A firm is evaluating three capital projects (1, 2 & 3, I know real original!).? Each projects costs $25,000.? The NPV for project 1 = $35,000; for project 2 the NPV is $15,000 and for project 3 the NPV is a negative $10,000. a. Accept project 1, reject 2 & 3 b. Accept projects 1 & 2, reject 3 c. Accept project 3, reject 1 & 2 d. Reject all three 3 points (Extra Credit) Question 4 1. The firm has a cost of capital of 12%.? Three projects are on the drawing board (A, B, & C). All? are independent projects.? .? The IRRs of the three are respectively:? 15%, 10%, -2%. The firm should: a. Accept A, reject B & C b. Accept A & B, reject C c. Accept all three d. Reject all three 2 points (Extra Credit) Question 5 1. If Net Present Value (NPV) is greater than the cost of capital, the project should be accepted. True False