11. Most of the capital budgeting methods use a. accrual accounting numbers. b. cash flow numbers. c. net income. d. accrual accounting revenues. 12. Which of the following ignores the time value of money? a. Internal rate of retum b. Profitability index c. Net present value d. Cash payback 13. When using the cash payback technique, the payback period is expressed in terms of a. a percent. b. dollars. C. years. d. months. 14. Caliber Company is considering the purchase ofa new machine costing S800,000. The company's management is estimating that the new machine will generate additional cash flows of S180,000 a year for ten years and have a salvage value ofS50,000 at the end of ten years. What is the machine's payback period? A) 4.44 years B) 6.77 years C) 3.33 years D) 5.33 years 15. Which of the following describes the term time value of money? A) Money can be used only at certain times and only for certain purposes. B) Money loses its purchasing power over time through inflation. C) Wasted time can result in wasted money. D) Value of a dollar received today will be higher than that received after some time, 16. The starting point in the budgeting process is the preparation of the: A) cash budget. B) sales budget. C) production budget. D) budgeted income statement