State whether the following statements are true or false. If false, explain why. LO1

(a) The four main capital investment appraisal techniques are payback period, accounting rate of return, net present value and internal rate of return.

(b) The payback period and net present value techniques generally use discounted cash flows.

(c) The accounting rate of return is the only investment appraisal technique that focuses on profits not cash flows.

(d) The discount rate normally used to discount cash flows is the interest rate charged by the Bank of England.

(e) Sensitivity analysis involves modelling future alternative scenarios and assessing their impact upon the results of capital investment appraisal techniques.