THIS PROBLEM CONTAINS FOUR QUESTIONS AND EACH QUESTION IS WORTH $4$ POINTS.

The following cash flows are estimated for two mutually exclusive projects.

QUESTION #$1.$ Based on the Payback rule,

would be selected.

QUESTION #$2.$ Based on the Internal rate of return $($IRR$)$ rule, choose your answer...

would be selected.

QUESTION #$3.$ Based on the Net Present Value $($NPV$)$ rule,

would be selected if the discount rate was higher than $6\mathrm{.}28\%$ but lower than

$9\mathrm{.}45\%.$

QUESTION #$4.$ Based on the Profitability Index $($PI$)$ rule,

would be selected if the discount rate was $6\%.$