1. A disadvantage with the average accounting return is the accounting basis of the values used in the computation.

Select one:

True

False

2.

A payback period that is less than the required period signals an accept decision. Select one:

True

False

3. A project is accepted if the target AAR exceeds the project ROI.

Select one:

True

False

4. If a project has a net present value equal to zero, then any delay in receiving the projected cash inflows will cause the project to have a negative net present value.

Select one:

True

False

5. If a project has a net present value equal to zero, then the present value of the cash inflows exceeds the initial cost of the project.

Select one:

True

False

6. If a project has a net present value equal to zero, then the project is expected to produce only the minimally required cash inflows to creditors and shareholders

Select one:

True

False

7. The payback calculation takes the time value of money into account.

Select one:

True

False

8. When comparing the payback and discounted payback, the discounted payback is more difficult to compute due to the time value of money.

Select one:

True

False