1. Elk Enterprise is in the process of selecting which of the following mutually exclsuive projects it should invest in. Date for each project is listed below. Elk's cost of capital is 9.9% and its target payback threshold is 2.4 years

discounted payback NPV MIRR

Project 1 2.4 years $10,250 10.1%

Project 2 2.1 years $6,890 10.2%

Project 3 1.1 years $7,220 12%

Project 4 0.7 years $1,330 23.3%

Should each project be accepted and rejected

2. Changes in net working capital can occur at:

A) the beginning of a project

B) the end of a project

C) any time during the life of a project

D) the beginning of any accounting period