5. Chuck’s investment proposal would be inferior to Edna’s proposal if it was expected to have a

a. longer payback period.

b. higher accounting rate of return.

c. higher internal rate of return.

d. higher profitability index.

e. larger net present value.

6. The payback method attempts to measure

a. how soon an investment is recovered.

b. the net cash inflow from an investment.

c. the estimated life of an investment.

d. the ROI of an investment.