Consider the following statements concerning the payback method of investment appraisal: 1. It completely ignores the timing of future cash flows. 2. It requires managers to determine an appropriate payback period. Which of these statements is/are correct? O A. 1 and 2 O B. 1 only O C. Neither 1 nor 2 O D. 2 onlyAn increase in the value of a sunk cost would have which ONE of the following effects on investment appraisal calculations? O A. Reduce the internal rate of return 0 B. Reduce the net present value 0 C. Lengthen the payback period 0 D. Have no effect The net present value of a project, using a 16% discount factor, is 10,000 negative and, using a 21% discount factor, is 40,000 negative. Identify the approximate internal rate of return for the project. O A. 19.3% 0 B. 14.3% 0 C. 17.7% 0 D. 13.2% The payback method is primarily focused on O A. liquidity O B. profitability O C. efficiency O D. wealth enhancementNixon Holidays Ltd has the opportunity to acquire a luxury barge for canal holidays. The barge will cost 146,000 and will have an expected life of six years. Annual operating profits from the barge are expected to be as follows: a (Click here to view the financial data.) At the end of its useful life, the barge will be sold for 24,000. The business has a target accounting rate of return of 14% for new investment projects. 1. Calculate the accounting rate of return for the barge. 2. Should the barge be purchased? Data table Operating prots E The accounting rate of return for the barge is %. (Round your answer to the nearest per cent.) 18 000 20,000 16,000 10,000 The accounting rate of return is V the required accounting rate of return for new projects a 15,000 6,000