$1.$ Explain why the timing and quantity of cash flows are important in capital investment decisions.

$2.$ The time value of money is ignored by the payback period and the ARR. Explain why this is a major deficiency in these two models.

$3.$ What is the payback period?

$4.$What is the accounting rate of return?

$5.$The NPV is the same as the profit of a project expressed in present dollars. Do you agree? Explain.

$6.$ Explain how the NPV is used to determine whether a project should be accepted or rejected.

$7.$ Explain what a postaudit is and how it can provide useful input for future capital investment decisions, especially those involving advanced technology.