q1.what are the annual net cash flows associated with (a) the infomercial project,(b)the training video project,and (c) the combined

project( the combination of the infomercial and training video project)?

q2, "use the undiscounted payback method to rank -order the three capital budgeting alternative facing IEI .based on this ranking should the firm pursue (a)the infomercial project (b) the training video project or (c) the combine the project ?"why? In your answer , assume the IEI's longest acceptable payback period is 4 years .

q3, Examine the payback periods you obtained for (a) the infomercial project , and (b) the training video project . Notice that when the analyst rounds the payback period for these projects to the nearest year, it is impossible to rank -order them. why is this the case ? can you think of a method involving the undiscounted payback technique that might permit a more precise determination of these project's payback periods ? if so, describe this method , and use it to rank -order the three investment alternative facing IEI.

Q4, review your answer to q3 . In order to incorporate fractional- year time periods within the payback framework , you made an important assumption about , and important about the timing of cash flows associated with of each three project what is this assumption , and why is it dangerous to make such an assumption in most capital budgeting circumstances?

q5,Now use the net present value methodology to evaluate the three capital budgeting alternatives facing IEI . based on this evolution , should the firm pursue (a) the infomercial project ,(b) the training video project, or (c) the combined the project? why ?

q6 As a final evaluation of the three capital budgeting alternatives facing IEI, use the internal rate of return methodology to rank - order these project . based on this evaluation, should the firm pursue (a) the infomercial project ,(b) the training video project, or (c) the combined the project? why ?

q7, given your knowledge of the shortcoming of the IRR methodology , is it accurate to use this method to evaluate the project alternative facing IEI? be sure to provide the necessary evidence to support your answer.

q8 review your answer to q,2,5, and 6 . compare the manner in which (1)the discounted payback method ,(b) the net present value method , and (c) the IRR method rank -ordered the three investment alternative facing IEI. based on this comparison,does any particular method of capital project evaluation seem superior to the other two? why or why not ? In general terms, is ti possible to sugget that any of the three methods is superior to the other two? why or why not?