Question 1 Part a)

1. Which one of the following statements is correct concerning the Payback Period valuation method?
The payback period considers The timing and amount of all of a projects cash flows
The payback rule works best when applied to mutually exclusive decisions.
The payback rule is biased in favor of short-term investments
The payback period is computed based on the present value of each of a project's cash flows

Part b)

Given that the cash flow for a certain project is even, which of the following about internal rate of return (IRR) is correct?
IRR and payback period will yield the same conclusion
The IRR is a better evaluation tool than the NPV method when two projects are mutually exclusive
IRR and NPV will yield the same conclusion about a project
The project has multiple IRR's

Part c)

5. Good project valuation method includes which of the following?
1. take into account all cash flows
2. take into account time value of money
3. take into account risk of the project
1 and 2
1 only
1,2,3
2 and 3

Please answer with explanations.