1. Various parts of the organization that are involved in capital investment analysis include all of the following EXCEPT

a. marketing specialists

b. financial analysis

c. creditors

d. managers

2. A minimum rate of return will be set by the organization to guard

a. the minimum costs

b. the profitability

c. fixed costs

d. variable costs

3. The minimum rate of return is also known as

a. payback period

b. net present value

c. hurdle rate

d. cost of debt

4. With regard to the time value of money

a. amounts are adjusted for inflation over the period of the investment

b. the amount of the present value is always higher than the future value

c. the future value amount is always higher than the present value amount

d. the present value and the future value have to be equal

5. Which of the following evaluation methods disregard the time value of money?

a. The accounting rate of return and discounted cash flows methods

b. The net present value and discounted cash flow methods

c. the payback period and net present value methods

d. the accounting rate-of -return and payback period methods