Which of the following is NOT a discounted cash flow technique? a. b. c. d. 1. payback period internal rate of return net present value profitability index Which of the following is NOT a flaw of the payback period method? a. b. c. d. 2. It ignores time value of money and risk. It assumes that the early cash flows will be reinvested at a rate equal to the cost of capital. It discards some useful information. It uses a subjective cutoff point for decisions. If project X and project Y are mutually exclusive, then the company manager is able to make all of the following decisions EXCEPT a. accept both X and Y b. accept X and reject Y c. reject X and accept Y d. reject both X and Y 3. A firm can create value for shareholders by a. accepting projects with short payback periods, thereby reducing risk b. accepting projects with an IRR that is greater than the required rate of return c. accepting all projects with positive IRRs d. accepting large projects over small ones 4