1. Which of the following statements is true?

   		If the payback period is less than the maximum acceptable payback period, accept the project.
   		If the payback period is greater than the maximum acceptable payback period, reject the project.
   		If the payback period is less than the maximum acceptable payback period, reject the project
   		Two of the above.

What is the IRR for the following project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $2,000,000 in year 1, $2,000,000 in year 2, $2,000,000 in year 3 and $1,410,000 in year 4?

		17.55%.
		0.00%.
		18.81%.
		None of the above.

When the net present value is zero, the internal rate of return is ________ the cost of capital.

		greater than
		greater than or equal to
		less than
		equal to