1. The budgets focus on the acquisition of equipment. a. operating b. capital c. cash d. all of the above 2. The future value of $100 in three years is given annual compounding and an annual interest rate of 10 percent. a. $110 b. $121 c. $133.10 d. $146.41 e. none of the above 3. The present value of $1,000 a year hence, given a 10 percent interest rate, is a. $900 b. $909.09 c. $915.21 d. none of the above 4. The payback approach to capital budgeting ignores a. the timing of the cash flows. b. cash outflows. c. cash inflows. d. the cost of the project. 5. The net present value approach considers all but one of the following. Which is not considered? a. cost of capital projects b. profit from the capital project c. cash inflows from the capital project d. cash outflows related to the capital project