1. Manny Perez is trying to understand the term "cost of capital." Define the term, and indicate its relevance to the decision rule under the annual rate of return technique. 2. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from operating activities? 3. Cash flows from operating activities can be calculated using the indirect or direct method. Briefly describe how the two methods differ yet arrive at the same information about the net cash flows from operating activities. 4. Why is it important to report discontinued operations separately from income from continuing operations